Correlation Between FUTURE GAMING and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on FUTURE GAMING and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and TSOGO SUN.
Diversification Opportunities for FUTURE GAMING and TSOGO SUN
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FUTURE and TSOGO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and TSOGO SUN go up and down completely randomly.
Pair Corralation between FUTURE GAMING and TSOGO SUN
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to under-perform the TSOGO SUN. In addition to that, FUTURE GAMING is 4.47 times more volatile than TSOGO SUN GAMING. It trades about -0.1 of its total potential returns per unit of risk. TSOGO SUN GAMING is currently generating about -0.37 per unit of volatility. If you would invest 64.00 in TSOGO SUN GAMING on September 1, 2024 and sell it today you would lose (5.00) from holding TSOGO SUN GAMING or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. TSOGO SUN GAMING
Performance |
| Timeline |
| FUTURE GAMING GRP |
| TSOGO SUN GAMING |
FUTURE GAMING and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and TSOGO SUN
The main advantage of trading using opposite FUTURE GAMING and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN'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 |
| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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