Correlation Between FUTURE GAMING and Amazon
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and Amazon 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 FUTURE GAMING and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUTURE GAMING GRP and Amazon Inc, you can compare the effects of market volatilities on FUTURE GAMING and Amazon 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 FUTURE GAMING with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and Amazon.
Diversification Opportunities for FUTURE GAMING and Amazon
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUTURE and Amazon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and FUTURE 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 FUTURE GAMING GRP are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and Amazon go up and down completely randomly.
Pair Corralation between FUTURE GAMING and Amazon
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 3.09 times more return on investment than Amazon. However, FUTURE GAMING is 3.09 times more volatile than Amazon Inc. It trades about 0.03 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.08 per unit of risk. If you would invest 51.00 in FUTURE GAMING GRP on September 2, 2024 and sell it today you would earn a total of 0.00 from holding FUTURE GAMING GRP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. Amazon Inc
Performance |
| Timeline |
| FUTURE GAMING GRP |
| Amazon Inc |
FUTURE GAMING and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and Amazon
The main advantage of trading using opposite FUTURE GAMING and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| FUTURE GAMING vs. Churchill Downs Incorporated | FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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