Correlation Between National Retail and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both National Retail and FUTURE GAMING 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 National Retail and FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and FUTURE GAMING GRP, you can compare the effects of market volatilities on National Retail and FUTURE GAMING 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 National Retail with a short position of FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and FUTURE GAMING.
Diversification Opportunities for National Retail and FUTURE GAMING
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and FUTURE is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP and National Retail 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 National Retail Properties are associated (or correlated) with FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of National Retail i.e., National Retail and FUTURE GAMING go up and down completely randomly.
Pair Corralation between National Retail and FUTURE GAMING
Assuming the 90 days trading horizon National Retail is expected to generate 4.89 times less return on investment than FUTURE GAMING. But when comparing it to its historical volatility, National Retail Properties is 4.45 times less risky than FUTURE GAMING. It trades about 0.02 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 45.00 in FUTURE GAMING GRP on December 4, 2024 and sell it today you would lose (2.00) from holding FUTURE GAMING GRP or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. FUTURE GAMING GRP
Performance |
| Timeline |
| National Retail Prop |
| FUTURE GAMING GRP |
National Retail and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and FUTURE GAMING
The main advantage of trading using opposite National Retail and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| National Retail vs. PennantPark Investment | National Retail vs. Japan Asia Investment | National Retail vs. Yunnan Water Investment | National Retail vs. PennyMac Mortgage Investment |
| FUTURE GAMING vs. Mitsubishi Materials | FUTURE GAMING vs. GRIFFIN MINING LTD | FUTURE GAMING vs. Eskay Mining Corp | FUTURE GAMING vs. THRACE PLASTICS |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |