Correlation Between MOVIE GAMES and SCOTT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and SCOTT TECHNOLOGY 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 MOVIE GAMES and SCOTT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and SCOTT TECHNOLOGY, you can compare the effects of market volatilities on MOVIE GAMES and SCOTT TECHNOLOGY 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 MOVIE GAMES with a short position of SCOTT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and SCOTT TECHNOLOGY.
Diversification Opportunities for MOVIE GAMES and SCOTT TECHNOLOGY
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MOVIE and SCOTT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and SCOTT TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOTT TECHNOLOGY and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with SCOTT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOTT TECHNOLOGY has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and SCOTT TECHNOLOGY go up and down completely randomly.
Pair Corralation between MOVIE GAMES and SCOTT TECHNOLOGY
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 1.28 times more return on investment than SCOTT TECHNOLOGY. However, MOVIE GAMES is 1.28 times more volatile than SCOTT TECHNOLOGY. It trades about 0.0 of its potential returns per unit of risk. SCOTT TECHNOLOGY is currently generating about 0.0 per unit of risk. If you would invest 570.00 in MOVIE GAMES SA on October 11, 2024 and sell it today you would lose (158.00) from holding MOVIE GAMES SA or give up 27.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. SCOTT TECHNOLOGY
Performance |
| Timeline |
| MOVIE GAMES SA |
| SCOTT TECHNOLOGY |
MOVIE GAMES and SCOTT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and SCOTT TECHNOLOGY
The main advantage of trading using opposite MOVIE GAMES and SCOTT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY will offset losses from the drop in SCOTT TECHNOLOGY's long position.| MOVIE GAMES vs. SINGAPORE AIRLINES | MOVIE GAMES vs. Nok Airlines PCL | MOVIE GAMES vs. Commercial Vehicle Group | MOVIE GAMES vs. Motorcar Parts of |
| SCOTT TECHNOLOGY vs. Harmony Gold Mining | SCOTT TECHNOLOGY vs. FIREWEED METALS P | SCOTT TECHNOLOGY vs. Zijin Mining Group | SCOTT TECHNOLOGY vs. Jacquet Metal Service |
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.
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