Correlation Between VARIOUS EATERIES and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES 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 VARIOUS EATERIES and FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and FUTURE GAMING GRP, you can compare the effects of market volatilities on VARIOUS EATERIES 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 VARIOUS EATERIES with a short position of FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and FUTURE GAMING.
Diversification Opportunities for VARIOUS EATERIES and FUTURE GAMING
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VARIOUS and FUTURE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS 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 VARIOUS EATERIES i.e., VARIOUS EATERIES and FUTURE GAMING go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and FUTURE GAMING
Assuming the 90 days horizon VARIOUS EATERIES is expected to generate 11.2 times less return on investment than FUTURE GAMING. But when comparing it to its historical volatility, VARIOUS EATERIES LS is 2.05 times less risky than FUTURE GAMING. It trades about 0.01 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 61.00 in FUTURE GAMING GRP on August 29, 2024 and sell it today you would earn a total of 2.00 from holding FUTURE GAMING GRP or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. FUTURE GAMING GRP
Performance |
| Timeline |
| VARIOUS EATERIES |
| FUTURE GAMING GRP |
VARIOUS EATERIES and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and FUTURE GAMING
The main advantage of trading using opposite VARIOUS EATERIES and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES 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.| VARIOUS EATERIES vs. STRAYER EDUCATION | VARIOUS EATERIES vs. GAMING FAC SA | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. TAL Education Group |
| FUTURE GAMING vs. Flutter Entertainment PLC | FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |