Correlation Between Light Wonder and Elys Game
Can any of the company-specific risk be diversified away by investing in both Light Wonder and Elys Game 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 Light Wonder and Elys Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Wonder and Elys Game Technology, you can compare the effects of market volatilities on Light Wonder and Elys Game 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 Light Wonder with a short position of Elys Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Wonder and Elys Game.
Diversification Opportunities for Light Wonder and Elys Game
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Light and Elys is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder and Elys Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elys Game Technology and Light Wonder 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 Light Wonder are associated (or correlated) with Elys Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elys Game Technology has no effect on the direction of Light Wonder i.e., Light Wonder and Elys Game go up and down completely randomly.
Pair Corralation between Light Wonder and Elys Game
If you would invest 9,569 in Light Wonder on August 29, 2024 and sell it today you would earn a total of 225.00 from holding Light Wonder or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Light Wonder vs. Elys Game Technology
Performance |
| Timeline |
| Light Wonder |
| Elys Game Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Light Wonder and Elys Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Wonder and Elys Game
The main advantage of trading using opposite Light Wonder and Elys Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder position performs unexpectedly, Elys Game 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 Elys Game will offset losses from the drop in Elys Game's long position.| Light Wonder vs. Codere Online Corp | Light Wonder vs. Inspired Entertainment | Light Wonder vs. International Game Technology | Light Wonder vs. Accel Entertainment |
| Elys Game vs. Entain Plc | Elys Game vs. Intema Solutions | Elys Game vs. 888 Holdings | Elys Game vs. Royal Wins |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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