Correlation Between 888 Holdings and Neogames
Can any of the company-specific risk be diversified away by investing in both 888 Holdings 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 888 Holdings and Neogames into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 888 Holdings and Neogames SA, you can compare the effects of market volatilities on 888 Holdings 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 888 Holdings with a short position of Neogames. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and Neogames.
Diversification Opportunities for 888 Holdings and Neogames
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 888 and Neogames is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings and Neogames SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogames SA and 888 Holdings 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 888 Holdings 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 888 Holdings i.e., 888 Holdings and Neogames go up and down completely randomly.
Pair Corralation between 888 Holdings and Neogames
Assuming the 90 days horizon 888 Holdings is expected to under-perform the Neogames. But the pink sheet apears to be less risky and, when comparing its historical volatility, 888 Holdings is 2.35 times less risky than Neogames. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Neogames SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,368 in Neogames SA on September 3, 2024 and sell it today you would earn a total of 1,341 from holding Neogames SA or generate 98.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
888 Holdings vs. Neogames SA
Performance |
| Timeline |
| 888 Holdings |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
888 Holdings and Neogames Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 888 Holdings and Neogames
The main advantage of trading using opposite 888 Holdings and Neogames positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings 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.| 888 Holdings vs. Entain Plc | 888 Holdings vs. PointsBet Holdings Limited | 888 Holdings vs. Kambi Group plc | 888 Holdings vs. Entain DRC PLC |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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