Correlation Between Churchill Downs and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both Churchill Downs and Jackpot Digital 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 Churchill Downs and Jackpot Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Downs Incorporated and Jackpot Digital, you can compare the effects of market volatilities on Churchill Downs and Jackpot Digital 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 Churchill Downs with a short position of Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Downs and Jackpot Digital.
Diversification Opportunities for Churchill Downs and Jackpot Digital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Churchill and Jackpot is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Downs Incorporated and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital and Churchill Downs 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 Churchill Downs Incorporated are associated (or correlated) with Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of Churchill Downs i.e., Churchill Downs and Jackpot Digital go up and down completely randomly.
Pair Corralation between Churchill Downs and Jackpot Digital
Given the investment horizon of 90 days Churchill Downs Incorporated is expected to generate 0.22 times more return on investment than Jackpot Digital. However, Churchill Downs Incorporated is 4.54 times less risky than Jackpot Digital. It trades about -0.29 of its potential returns per unit of risk. Jackpot Digital is currently generating about -0.15 per unit of risk. If you would invest 13,354 in Churchill Downs Incorporated on November 1, 2024 and sell it today you would lose (798.00) from holding Churchill Downs Incorporated or give up 5.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Churchill Downs Incorporated vs. Jackpot Digital
Performance |
| Timeline |
| Churchill Downs |
| Jackpot Digital |
Churchill Downs and Jackpot Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Downs and Jackpot Digital
The main advantage of trading using opposite Churchill Downs and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Downs position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.| Churchill Downs vs. Accel Entertainment | Churchill Downs vs. PlayAGS | Churchill Downs vs. International Game Technology | Churchill Downs vs. Everi Holdings |
| Jackpot Digital vs. Intema Solutions | Jackpot Digital vs. 888 Holdings | Jackpot Digital vs. Royal Wins | Jackpot Digital vs. Churchill Downs Incorporated |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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