Correlation Between Real Luck and Galaxy Gaming
Can any of the company-specific risk be diversified away by investing in both Real Luck and Galaxy 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 Real Luck and Galaxy Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Luck Group and Galaxy Gaming, you can compare the effects of market volatilities on Real Luck and Galaxy 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 Real Luck with a short position of Galaxy Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Luck and Galaxy Gaming.
Diversification Opportunities for Real Luck and Galaxy Gaming
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Real and Galaxy is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Real Luck Group and Galaxy Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Gaming and Real Luck 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 Real Luck Group are associated (or correlated) with Galaxy Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Gaming has no effect on the direction of Real Luck i.e., Real Luck and Galaxy Gaming go up and down completely randomly.
Pair Corralation between Real Luck and Galaxy Gaming
Assuming the 90 days horizon Real Luck Group is expected to generate 3.79 times more return on investment than Galaxy Gaming. However, Real Luck is 3.79 times more volatile than Galaxy Gaming. It trades about 0.03 of its potential returns per unit of risk. Galaxy Gaming is currently generating about 0.03 per unit of risk. If you would invest 6.70 in Real Luck Group on August 24, 2024 and sell it today you would lose (6.70) from holding Real Luck Group or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Luck Group vs. Galaxy Gaming
Performance |
| Timeline |
| Real Luck Group |
| Galaxy Gaming |
Real Luck and Galaxy Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Luck and Galaxy Gaming
The main advantage of trading using opposite Real Luck and Galaxy Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Luck position performs unexpectedly, Galaxy 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 Galaxy Gaming will offset losses from the drop in Galaxy Gaming's long position.The idea behind Real Luck Group and Galaxy Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Galaxy Gaming vs. Real Luck Group | Galaxy Gaming vs. Betmakers Technology Group | Galaxy Gaming vs. Jackpot Digital |
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 CEOs Directory module to screen CEOs from public companies around the world.
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