Correlation Between Electronic Arts and Glu Mobile
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Glu Mobile 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 Electronic Arts and Glu Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Glu Mobile, you can compare the effects of market volatilities on Electronic Arts and Glu Mobile 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 Electronic Arts with a short position of Glu Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Glu Mobile.
Diversification Opportunities for Electronic Arts and Glu Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and Glu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Glu Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glu Mobile and Electronic Arts 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 Electronic Arts are associated (or correlated) with Glu Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glu Mobile has no effect on the direction of Electronic Arts i.e., Electronic Arts and Glu Mobile go up and down completely randomly.
Pair Corralation between Electronic Arts and Glu Mobile
If you would invest (100.00) in Glu Mobile on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Glu Mobile or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electronic Arts vs. Glu Mobile
Performance |
| Timeline |
| Electronic Arts |
| Glu Mobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electronic Arts and Glu Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Glu Mobile
The main advantage of trading using opposite Electronic Arts and Glu Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Glu Mobile 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 Glu Mobile will offset losses from the drop in Glu Mobile's long position.| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Playtika Holding Corp | Electronic Arts vs. Doubledown InteractiveCo |
| Glu Mobile vs. Cannae Holdings | Glu Mobile vs. First Watch Restaurant | Glu Mobile vs. Ternium SA ADR | Glu Mobile vs. Ark Restaurants Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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