Correlation Between Ebet and Leisure Fund

Can any of the company-specific risk be diversified away by investing in both Ebet and Leisure Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ebet and Leisure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ebet Inc and Leisure Fund Investor, you can compare the effects of market volatilities on Ebet and Leisure Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ebet with a short position of Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebet and Leisure Fund.

Diversification Opportunities for Ebet and Leisure Fund

-0.96

Correlation Coefficient

Ebet  Leisure Fund

Pay attention - limited upside

The 3 months correlation between Ebet and Leisure is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and Leisure Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Investor and Ebet is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ebet Inc are associated (or correlated) with Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Investor has no effect on the direction of Ebet i.e., Ebet and Leisure Fund go up and down completely randomly.

Pair Corralation between Ebet and Leisure Fund

If you would invest  9,038  in Leisure Fund Investor on September 5, 2024 and sell it today you would earn a total of  739.00  from holding Leisure Fund Investor or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

Ebet Inc  vs.  Leisure Fund Investor

Ebet Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ebet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Ebet is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Leisure Fund Investor

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Leisure Fund Investor are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Leisure Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ebet and Leisure Fund

The main advantage of trading using opposite Ebet and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebet position performs unexpectedly, Leisure Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Leisure Fund will offset losses from the drop in Leisure Fund's long position.

The idea behind Ebet Inc and Leisure Fund Investor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.