Correlation Between EM and Yield Guild

Can any of the company-specific risk be diversified away by investing in both EM and Yield Guild 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 EM and Yield Guild into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EM and Yield Guild Games, you can compare the effects of market volatilities on EM and Yield Guild 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 EM with a short position of Yield Guild. Check out your portfolio center. Please also check ongoing floating volatility patterns of EM and Yield Guild.

Diversification Opportunities for EM and Yield Guild

0.0

Correlation Coefficient

EM  Yield Guild

Pay attention - limited upside

The 3 months correlation between EM and Yield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EM and Yield Guild Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yield Guild Games and EM 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 EM are associated (or correlated) with Yield Guild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yield Guild Games has no effect on the direction of EM i.e., EM and Yield Guild go up and down completely randomly.

Pair Corralation between EM and Yield Guild

If you would invest  0.01  in EM on November 27, 2024 and sell it today you would earn a total of  0.00  from holding EM or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

EM  vs.  Yield Guild Games

EM

Risk-Adjusted Performance

Very Weak

Over the last 90 days EM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, EM is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Yield Guild Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yield Guild Games has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Yield Guild Games shareholders.

Pair Trading with EM and Yield Guild

The main advantage of trading using opposite EM and Yield Guild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EM position performs unexpectedly, Yield Guild 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 Yield Guild will offset losses from the drop in Yield Guild's long position.

The idea behind EM and Yield Guild Games 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.