Correlation Between Genius Sports and Super League

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

By analyzing existing cross correlation between Genius Sports and Super League Enterprise, you can compare the effects of market volatilities on Genius Sports and Super League 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 Genius Sports with a short position of Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and Super League.

Diversification Opportunities for Genius Sports and Super League

-0.5

Correlation Coefficient

Genius Sports  Super League

Very good diversification

The 3 months correlation between Genius and Super is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise and Genius Sports 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 Genius Sports are associated (or correlated) with Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of Genius Sports i.e., Genius Sports and Super League go up and down completely randomly.

Pair Corralation between Genius Sports and Super League

Given the investment horizon of 90 days Genius Sports is expected to generate 0.51 times more return on investment than Super League. However, Genius Sports is 1.98 times less risky than Super League. It trades about 0.13 of its potential returns per unit of risk. Super League Enterprise is currently generating about -0.08 per unit of risk. If you would invest  862.00  in Genius Sports on December 28, 2024 and sell it today you would earn a total of  222.00  from holding Genius Sports or generate 25.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Genius Sports  vs.  Super League Enterprise

Genius Sports

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genius Sports are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Genius Sports demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Super League Enterprise

Risk-Adjusted Performance

Very Weak

Over the last 90 days Super League Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Genius Sports and Super League

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

The idea behind Genius Sports and Super League Enterprise 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.