Correlation Between Gaming and National Health
Can any of the company-specific risk be diversified away by investing in both Gaming and National Health 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 National Health 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 National Health Investors, you can compare the effects of market volatilities on Gaming and National Health 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 National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and National Health.
Diversification Opportunities for Gaming and National Health
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaming and National is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors 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 National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of Gaming i.e., Gaming and National Health go up and down completely randomly.
Pair Corralation between Gaming and National Health
Assuming the 90 days horizon Gaming and Leisure is expected to generate 0.64 times more return on investment than National Health. However, Gaming and Leisure is 1.57 times less risky than National Health. It trades about 0.05 of its potential returns per unit of risk. National Health Investors is currently generating about 0.02 per unit of risk. If you would invest 4,251 in Gaming and Leisure on October 19, 2024 and sell it today you would earn a total of 295.00 from holding Gaming and Leisure or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming and Leisure vs. National Health Investors
Performance |
| Timeline |
| Gaming and Leisure |
| National Health Investors |
Gaming and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and National Health
The main advantage of trading using opposite Gaming and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.| Gaming vs. SOGECLAIR SA INH | Gaming vs. AGNC INVESTMENT | Gaming vs. EAT WELL INVESTMENT | Gaming vs. MidCap Financial Investment |
| National Health vs. Liberty Broadband | National Health vs. GOLD ROAD RES | National Health vs. EVS Broadcast Equipment | National Health vs. Samsung Electronics Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |