Correlation Between Gaming and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both Gaming and Haleon PLC 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 and Haleon PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and Haleon PLC, you can compare the effects of market volatilities on Gaming and Haleon PLC 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 with a short position of Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and Haleon PLC.
Diversification Opportunities for Gaming and Haleon PLC
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaming and Haleon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC and Gaming 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 and Leisure are associated (or correlated) with Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of Gaming i.e., Gaming and Haleon PLC go up and down completely randomly.
Pair Corralation between Gaming and Haleon PLC
Assuming the 90 days horizon Gaming and Leisure is expected to generate 0.76 times more return on investment than Haleon PLC. However, Gaming and Leisure is 1.32 times less risky than Haleon PLC. It trades about -0.05 of its potential returns per unit of risk. Haleon PLC is currently generating about -0.07 per unit of risk. If you would invest 4,294 in Gaming and Leisure on April 23, 2025 and sell it today you would lose (181.00) from holding Gaming and Leisure or give up 4.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gaming and Leisure vs. Haleon PLC
Performance |
Timeline |
Gaming and Leisure |
Haleon PLC |
Gaming and Haleon PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaming and Haleon PLC
The main advantage of trading using opposite Gaming and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.Gaming vs. Corporate Office Properties | Gaming vs. SBA Communications Corp | Gaming vs. China Yongda Automobiles | Gaming vs. SmarTone Telecommunications Holdings |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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