Correlation Between GAMING FAC and Scientific Games
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and Scientific Games 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 FAC and Scientific Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Scientific Games, you can compare the effects of market volatilities on GAMING FAC and Scientific Games 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 FAC with a short position of Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Scientific Games.
Diversification Opportunities for GAMING FAC and Scientific Games
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMING and Scientific is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games and GAMING FAC 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 FAC SA are associated (or correlated) with Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of GAMING FAC i.e., GAMING FAC and Scientific Games go up and down completely randomly.
Pair Corralation between GAMING FAC and Scientific Games
Assuming the 90 days horizon GAMING FAC SA is expected to generate 1.15 times more return on investment than Scientific Games. However, GAMING FAC is 1.15 times more volatile than Scientific Games. It trades about -0.22 of its potential returns per unit of risk. Scientific Games is currently generating about -0.39 per unit of risk. If you would invest 171.00 in GAMING FAC SA on September 26, 2024 and sell it today you would lose (16.00) from holding GAMING FAC SA or give up 9.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GAMING FAC SA vs. Scientific Games
Performance |
Timeline |
GAMING FAC SA |
Scientific Games |
GAMING FAC and Scientific Games Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GAMING FAC and Scientific Games
The main advantage of trading using opposite GAMING FAC and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, Scientific Games 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 Scientific Games will offset losses from the drop in Scientific Games' long position.GAMING FAC vs. MGIC INVESTMENT | GAMING FAC vs. SERI INDUSTRIAL EO | GAMING FAC vs. PennantPark Investment | GAMING FAC vs. SEI INVESTMENTS |
Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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