Correlation Between Moneysupermarket and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Moneysupermarket and FUTURE GAMING 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 Moneysupermarket and FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneysupermarket Group PLC and FUTURE GAMING GRP, you can compare the effects of market volatilities on Moneysupermarket and FUTURE GAMING 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 Moneysupermarket with a short position of FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneysupermarket and FUTURE GAMING.
Diversification Opportunities for Moneysupermarket and FUTURE GAMING
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Moneysupermarket and FUTURE is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Moneysupermarket Group PLC and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP and Moneysupermarket 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 Moneysupermarket Group PLC are associated (or correlated) with FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Moneysupermarket i.e., Moneysupermarket and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Moneysupermarket and FUTURE GAMING
Assuming the 90 days horizon Moneysupermarket Group PLC is expected to under-perform the FUTURE GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Moneysupermarket Group PLC is 2.42 times less risky than FUTURE GAMING. The stock trades about -0.03 of its potential returns per unit of risk. The FUTURE GAMING GRP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 49.00 in FUTURE GAMING GRP on September 14, 2024 and sell it today you would earn a total of 2.00 from holding FUTURE GAMING GRP or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moneysupermarket Group PLC vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Moneysupermarket |
| FUTURE GAMING GRP |
Moneysupermarket and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneysupermarket and FUTURE GAMING
The main advantage of trading using opposite Moneysupermarket and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneysupermarket position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Moneysupermarket vs. FUTURE GAMING GRP | Moneysupermarket vs. HOCHSCHILD MINING | Moneysupermarket vs. JIAHUA STORES | Moneysupermarket vs. National Retail Properties |
| FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp | FUTURE GAMING vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |