Correlation Between Churchill Downs and Neogames
Can any of the company-specific risk be diversified away by investing in both Churchill Downs 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 Churchill Downs and Neogames 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 Neogames SA, you can compare the effects of market volatilities on Churchill Downs 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 Churchill Downs with a short position of Neogames. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Downs and Neogames.
Diversification Opportunities for Churchill Downs and Neogames
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Churchill and Neogames is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Downs Incorporated and Neogames SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogames SA 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 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 Churchill Downs i.e., Churchill Downs and Neogames go up and down completely randomly.
Pair Corralation between Churchill Downs and Neogames
If you would invest 13,413 in Churchill Downs Incorporated on August 24, 2024 and sell it today you would earn a total of 818.00 from holding Churchill Downs Incorporated or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Churchill Downs Incorporated vs. Neogames SA
Performance |
| Timeline |
| Churchill Downs |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Downs and Neogames Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Downs and Neogames
The main advantage of trading using opposite Churchill Downs and Neogames positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Downs 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.| Churchill Downs vs. Accel Entertainment | Churchill Downs vs. PlayAGS | Churchill Downs vs. International Game Technology | Churchill Downs vs. Everi Holdings |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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