Correlation Between TGS Esports and InPlay Oil

Can any of the company-specific risk be diversified away by investing in both TGS Esports and InPlay Oil 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 TGS Esports and InPlay Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TGS Esports and InPlay Oil Corp, you can compare the effects of market volatilities on TGS Esports and InPlay Oil 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 TGS Esports with a short position of InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGS Esports and InPlay Oil.

Diversification Opportunities for TGS Esports and InPlay Oil

0.0

Correlation Coefficient

TGS Esports  InPlay Oil

Pay attention - limited upside

The 3 months correlation between TGS and InPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TGS Esports and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and TGS Esports 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 TGS Esports are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of TGS Esports i.e., TGS Esports and InPlay Oil go up and down completely randomly.

Pair Corralation between TGS Esports and InPlay Oil

If you would invest  856.00  in InPlay Oil Corp on April 24, 2025 and sell it today you would earn a total of  181.00  from holding InPlay Oil Corp or generate 21.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TGS Esports  vs.  InPlay Oil Corp

TGS Esports

Risk-Adjusted Performance

Very Weak

Over the last 90 days TGS Esports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TGS Esports is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

InPlay Oil Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InPlay Oil Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, InPlay Oil displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TGS Esports and InPlay Oil

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

The idea behind TGS Esports and InPlay Oil Corp 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.