Correlation Between FUTURE GAMING and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on FUTURE GAMING and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and Corning Incorporated.
Diversification Opportunities for FUTURE GAMING and Corning Incorporated
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FUTURE and Corning is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and Corning Incorporated go up and down completely randomly.
Pair Corralation between FUTURE GAMING and Corning Incorporated
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 1.34 times more return on investment than Corning Incorporated. However, FUTURE GAMING is 1.34 times more volatile than Corning Incorporated. It trades about 0.25 of its potential returns per unit of risk. Corning Incorporated is currently generating about 0.15 per unit of risk. If you would invest 37.00 in FUTURE GAMING GRP on November 27, 2024 and sell it today you would earn a total of 5.00 from holding FUTURE GAMING GRP or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. Corning Incorporated
Performance |
| Timeline |
| FUTURE GAMING GRP |
| Corning Incorporated |
FUTURE GAMING and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and Corning Incorporated
The main advantage of trading using opposite FUTURE GAMING and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| FUTURE GAMING vs. Norwegian Air Shuttle | FUTURE GAMING vs. Ryanair Holdings plc | FUTURE GAMING vs. Alaska Air Group | FUTURE GAMING vs. Air New Zealand |
| Corning Incorporated vs. STMICROELECTRONICS | Corning Incorporated vs. UMC Electronics Co | Corning Incorporated vs. MUTUIONLINE | Corning Incorporated vs. GungHo Online Entertainment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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