Correlation Between Gaming Realms and Knight Transportation
Can any of the company-specific risk be diversified away by investing in both Gaming Realms and Knight Transportation 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 Gaming Realms and Knight Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Realms plc and Knight Transportation, you can compare the effects of market volatilities on Gaming Realms and Knight Transportation 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 Gaming Realms with a short position of Knight Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Realms and Knight Transportation.
Diversification Opportunities for Gaming Realms and Knight Transportation
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaming and Knight is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Realms plc and Knight Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Transportation and Gaming Realms 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 Gaming Realms plc are associated (or correlated) with Knight Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Transportation has no effect on the direction of Gaming Realms i.e., Gaming Realms and Knight Transportation go up and down completely randomly.
Pair Corralation between Gaming Realms and Knight Transportation
Assuming the 90 days horizon Gaming Realms is expected to generate 30.73 times less return on investment than Knight Transportation. But when comparing it to its historical volatility, Gaming Realms plc is 1.87 times less risky than Knight Transportation. It trades about 0.01 of its potential returns per unit of risk. Knight Transportation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,275 in Knight Transportation on September 9, 2025 and sell it today you would earn a total of 826.00 from holding Knight Transportation or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Gaming Realms plc vs. Knight Transportation
Performance |
| Timeline |
| Gaming Realms plc |
| Knight Transportation |
Gaming Realms and Knight Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Realms and Knight Transportation
The main advantage of trading using opposite Gaming Realms and Knight Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Realms position performs unexpectedly, Knight Transportation 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 Knight Transportation will offset losses from the drop in Knight Transportation's long position.| Gaming Realms vs. PointsBet Holdings Limited | Gaming Realms vs. Ainsworth Game Technology | Gaming Realms vs. Hostelworld Group plc | Gaming Realms vs. Bloomberry Resorts |
| Knight Transportation vs. TFI International | Knight Transportation vs. Saia Inc | Knight Transportation vs. Federal Signal | Knight Transportation vs. Simpson Manufacturing |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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