Correlation Between Gaming Realms and PointsBet Holdings
Can any of the company-specific risk be diversified away by investing in both Gaming Realms and PointsBet Holdings 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 PointsBet Holdings 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 PointsBet Holdings Limited, you can compare the effects of market volatilities on Gaming Realms and PointsBet Holdings 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 PointsBet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Realms and PointsBet Holdings.
Diversification Opportunities for Gaming Realms and PointsBet Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gaming and PointsBet is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Realms plc and PointsBet Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PointsBet Holdings 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 PointsBet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PointsBet Holdings has no effect on the direction of Gaming Realms i.e., Gaming Realms and PointsBet Holdings go up and down completely randomly.
Pair Corralation between Gaming Realms and PointsBet Holdings
Assuming the 90 days horizon Gaming Realms is expected to generate 607.26 times less return on investment than PointsBet Holdings. But when comparing it to its historical volatility, Gaming Realms plc is 30.26 times less risky than PointsBet Holdings. It trades about 0.01 of its potential returns per unit of risk. PointsBet Holdings Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 40.00 in PointsBet Holdings Limited on August 31, 2025 and sell it today you would lose (3.00) from holding PointsBet Holdings Limited or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Realms plc vs. PointsBet Holdings Limited
Performance |
| Timeline |
| Gaming Realms plc |
| PointsBet Holdings |
Gaming Realms and PointsBet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Realms and PointsBet Holdings
The main advantage of trading using opposite Gaming Realms and PointsBet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Realms position performs unexpectedly, PointsBet Holdings 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 PointsBet Holdings will offset losses from the drop in PointsBet Holdings' long position.| Gaming Realms vs. Flutter Entertainment plc | Gaming Realms vs. Evolution Gaming Group | Gaming Realms vs. Evolution AB | Gaming Realms vs. DraftKings |
| PointsBet Holdings vs. Broadstone Net Lease | PointsBet Holdings vs. Lamar Advertising | PointsBet Holdings vs. Evs Broadcast Equipment | PointsBet Holdings vs. Konoike Transport CoLtd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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