Correlation Between Blue Hat and Enthusiast Gaming

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

By analyzing existing cross correlation between Blue Hat Interactive and Enthusiast Gaming Holdings, you can compare the effects of market volatilities on Blue Hat and Enthusiast Gaming 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 Blue Hat with a short position of Enthusiast Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and Enthusiast Gaming.

Diversification Opportunities for Blue Hat and Enthusiast Gaming

-0.17

Correlation Coefficient

Blue Hat  Enthusiast Gaming

Good diversification

The 3 months correlation between Blue and Enthusiast is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and Enthusiast Gaming Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enthusiast Gaming and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with Enthusiast Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enthusiast Gaming has no effect on the direction of Blue Hat i.e., Blue Hat and Enthusiast Gaming go up and down completely randomly.

Pair Corralation between Blue Hat and Enthusiast Gaming

If you would invest (100.00) in Enthusiast Gaming Holdings on January 25, 2024 and sell it today you would earn a total of  100.00  from holding Enthusiast Gaming Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blue Hat Interactive  vs.  Enthusiast Gaming Holdings

Blue Hat Interactive

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Hat Interactive are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Blue Hat may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Enthusiast Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enthusiast Gaming Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Enthusiast Gaming is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blue Hat and Enthusiast Gaming

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

The idea behind Blue Hat Interactive and Enthusiast Gaming Holdings 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.