Correlation Between TGS ESPORTS and ATRESMEDIA

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

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

Diversification Opportunities for TGS ESPORTS and ATRESMEDIA

0.0

Correlation Coefficient

TGS ESPORTS  ATRESMEDIA

Pay attention - limited upside

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

Pair Corralation between TGS ESPORTS and ATRESMEDIA

If you would invest  420.00  in ATRESMEDIA on January 25, 2024 and sell it today you would earn a total of  30.00  from holding ATRESMEDIA or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

TGS ESPORTS INC  vs.  ATRESMEDIA

TGS ESPORTS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TGS ESPORTS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TGS ESPORTS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ATRESMEDIA

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ATRESMEDIA are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ATRESMEDIA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TGS ESPORTS and ATRESMEDIA

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

The idea behind TGS ESPORTS INC and ATRESMEDIA 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.