Correlation Between FUTURE GAMING and MOOG INC
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and MOOG INC 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 MOOG INC 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 MOOG INC CL, you can compare the effects of market volatilities on FUTURE GAMING and MOOG INC 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 MOOG INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and MOOG INC.
Diversification Opportunities for FUTURE GAMING and MOOG INC
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUTURE and MOOG is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and MOOG INC CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOOG INC CL 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 MOOG INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOOG INC CL has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and MOOG INC go up and down completely randomly.
Pair Corralation between FUTURE GAMING and MOOG INC
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to under-perform the MOOG INC. In addition to that, FUTURE GAMING is 2.53 times more volatile than MOOG INC CL. It trades about -0.11 of its total potential returns per unit of risk. MOOG INC CL is currently generating about -0.05 per unit of volatility. If you would invest 18,970 in MOOG INC CL on September 13, 2024 and sell it today you would lose (470.00) from holding MOOG INC CL or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. MOOG INC CL
Performance |
| Timeline |
| FUTURE GAMING GRP |
| MOOG INC CL |
FUTURE GAMING and MOOG INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and MOOG INC
The main advantage of trading using opposite FUTURE GAMING and MOOG INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, MOOG INC 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 MOOG INC will offset losses from the drop in MOOG INC's long position.| FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp | FUTURE GAMING vs. SIVERS SEMICONDUCTORS AB |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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