Correlation Between Codere Online and Neogames
Can any of the company-specific risk be diversified away by investing in both Codere Online and Neogames 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 Codere Online and Neogames into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codere Online Corp and Neogames SA, you can compare the effects of market volatilities on Codere Online and Neogames 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 Codere Online with a short position of Neogames. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codere Online and Neogames.
Diversification Opportunities for Codere Online and Neogames
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Codere and Neogames is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Codere Online Corp and Neogames SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogames SA and Codere Online 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 Codere Online Corp are associated (or correlated) with Neogames. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogames SA has no effect on the direction of Codere Online i.e., Codere Online and Neogames go up and down completely randomly.
Pair Corralation between Codere Online and Neogames
If you would invest 2,709 in Neogames SA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Neogames SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Codere Online Corp vs. Neogames SA
Performance |
| Timeline |
| Codere Online Corp |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Codere Online and Neogames Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codere Online and Neogames
The main advantage of trading using opposite Codere Online and Neogames positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codere Online position performs unexpectedly, Neogames 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 Neogames will offset losses from the drop in Neogames' long position.| Codere Online vs. Accel Entertainment | Codere Online vs. PlayAGS | Codere Online vs. Gambling Group | Codere Online vs. Canterbury Park Holding |
| Neogames vs. Accel Entertainment | Neogames vs. PlayAGS | Neogames vs. International Game Technology | Neogames vs. Everi Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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