Correlation Between Apple and Scientific Games
Can any of the company-specific risk be diversified away by investing in both Apple and Scientific Games 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 Apple and Scientific Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Scientific Games, you can compare the effects of market volatilities on Apple and Scientific Games 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 Apple with a short position of Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Scientific Games.
Diversification Opportunities for Apple and Scientific Games
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Scientific is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games and Apple 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 Apple Inc are associated (or correlated) with Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of Apple i.e., Apple and Scientific Games go up and down completely randomly.
Pair Corralation between Apple and Scientific Games
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Scientific Games. In addition to that, Apple is 1.16 times more volatile than Scientific Games. It trades about -0.45 of its total potential returns per unit of risk. Scientific Games is currently generating about 0.1 per unit of volatility. If you would invest 8,100 in Scientific Games on October 29, 2024 and sell it today you would earn a total of 200.00 from holding Scientific Games or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Scientific Games
Performance |
| Timeline |
| Apple Inc |
| Scientific Games |
Apple and Scientific Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Scientific Games
The main advantage of trading using opposite Apple and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Scientific Games 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 Scientific Games will offset losses from the drop in Scientific Games' long position.| Apple vs. LG Display Co | Apple vs. Mitsubishi Gas Chemical | Apple vs. InPlay Oil Corp | Apple vs. PLAY2CHILL SA ZY |
| Scientific Games vs. RYU Apparel | Scientific Games vs. URBAN OUTFITTERS | Scientific Games vs. GREENX METALS LTD | Scientific Games vs. American Eagle Outfitters |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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