Correlation Between Network Media and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Network Media and Guild Esports 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 Network Media and Guild Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Network Media Group and Guild Esports Plc, you can compare the effects of market volatilities on Network Media and Guild Esports 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 Network Media with a short position of Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network Media and Guild Esports.
Diversification Opportunities for Network Media and Guild Esports
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Network and Guild is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Network Media Group and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc and Network Media 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 Network Media Group are associated (or correlated) with Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Network Media i.e., Network Media and Guild Esports go up and down completely randomly.
Pair Corralation between Network Media and Guild Esports
Assuming the 90 days horizon Network Media Group is expected to under-perform the Guild Esports. But the otc stock apears to be less risky and, when comparing its historical volatility, Network Media Group is 6.76 times less risky than Guild Esports. The otc stock trades about -0.12 of its potential returns per unit of risk. The Guild Esports Plc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.08 in Guild Esports Plc on October 3, 2025 and sell it today you would lose (2.78) from holding Guild Esports Plc or give up 68.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.06% |
| Values | Daily Returns |
Network Media Group vs. Guild Esports Plc
Performance |
| Timeline |
| Network Media Group |
| Guild Esports Plc |
Risk-Adjusted Performance
Soft
Weak | Strong |
Network Media and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network Media and Guild Esports
The main advantage of trading using opposite Network Media and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network Media position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| Network Media vs. HeadsUp Entertainment International | Network Media vs. Big Screen Entertainment | Network Media vs. Farmhouse | Network Media vs. Legible |
| Guild Esports vs. Amcomri Entertainment | Guild Esports vs. Earthworks Entertainment | Guild Esports vs. Asia Global Crossing | Guild Esports vs. Movie Studio |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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