Correlation Between Betmakers Technology and Empire Global

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

By analyzing existing cross correlation between Betmakers Technology Group and Empire Global Gaming, you can compare the effects of market volatilities on Betmakers Technology and Empire Global 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 Betmakers Technology with a short position of Empire Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betmakers Technology and Empire Global.

Diversification Opportunities for Betmakers Technology and Empire Global

0.18

Correlation Coefficient

Betmakers Technology  Empire Global

Average diversification

The 3 months correlation between Betmakers and Empire is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Betmakers Technology Group and Empire Global Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empire Global Gaming and Betmakers Technology 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 Betmakers Technology Group are associated (or correlated) with Empire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empire Global Gaming has no effect on the direction of Betmakers Technology i.e., Betmakers Technology and Empire Global go up and down completely randomly.

Pair Corralation between Betmakers Technology and Empire Global

Assuming the 90 days horizon Betmakers Technology is expected to generate 30.42 times less return on investment than Empire Global. But when comparing it to its historical volatility, Betmakers Technology Group is 36.53 times less risky than Empire Global. It trades about 0.09 of its potential returns per unit of risk. Empire Global Gaming is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  0.03  in Empire Global Gaming on October 21, 2024 and sell it today you would lose (0.02) from holding Empire Global Gaming or give up 66.67% of portfolio value over 90 days.

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

Betmakers Technology Group  vs.  Empire Global Gaming

Betmakers Technology

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Betmakers Technology Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Betmakers Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Empire Global Gaming

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Empire Global Gaming are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Empire Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Betmakers Technology and Empire Global

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

The idea behind Betmakers Technology Group and Empire Global Gaming 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.