Correlation Between Light Wonder and SUPER HI
Can any of the company-specific risk be diversified away by investing in both Light Wonder and SUPER HI 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 SUPER HI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Wonder and SUPER HI INTERNATIONAL, you can compare the effects of market volatilities on Light Wonder and SUPER HI 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 SUPER HI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Wonder and SUPER HI.
Diversification Opportunities for Light Wonder and SUPER HI
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Light and SUPER is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder and SUPER HI INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER HI INTERNATIONAL 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 SUPER HI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER HI INTERNATIONAL has no effect on the direction of Light Wonder i.e., Light Wonder and SUPER HI go up and down completely randomly.
Pair Corralation between Light Wonder and SUPER HI
Considering the 90-day investment horizon Light Wonder is expected to generate 1.13 times more return on investment than SUPER HI. However, Light Wonder is 1.13 times more volatile than SUPER HI INTERNATIONAL. It trades about 0.06 of its potential returns per unit of risk. SUPER HI INTERNATIONAL is currently generating about 0.07 per unit of risk. If you would invest 9,425 in Light Wonder on August 31, 2024 and sell it today you would earn a total of 283.00 from holding Light Wonder or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Light Wonder vs. SUPER HI INTERNATIONAL
Performance |
| Timeline |
| Light Wonder |
| SUPER HI INTERNATIONAL |
Light Wonder and SUPER HI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Wonder and SUPER HI
The main advantage of trading using opposite Light Wonder and SUPER HI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder position performs unexpectedly, SUPER HI 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 SUPER HI will offset losses from the drop in SUPER HI'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 |
| SUPER HI vs. RLJ Lodging Trust | SUPER HI vs. Aquagold International | SUPER HI vs. Stepstone Group | SUPER HI vs. Morningstar Unconstrained Allocation |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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