Correlation Between Neogames and Canterbury Park
Can any of the company-specific risk be diversified away by investing in both Neogames and Canterbury Park 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 Neogames and Canterbury Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogames SA and Canterbury Park Holding, you can compare the effects of market volatilities on Neogames and Canterbury Park 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 Neogames with a short position of Canterbury Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogames and Canterbury Park.
Diversification Opportunities for Neogames and Canterbury Park
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Neogames and Canterbury is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Neogames SA and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and Neogames 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 Neogames SA are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of Neogames i.e., Neogames and Canterbury Park go up and down completely randomly.
Pair Corralation between Neogames and Canterbury Park
If you would invest 1,888 in Canterbury Park Holding on August 27, 2024 and sell it today you would earn a total of 142.00 from holding Canterbury Park Holding or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Neogames SA vs. Canterbury Park Holding
Performance |
| Timeline |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canterbury Park Holding |
Neogames and Canterbury Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogames and Canterbury Park
The main advantage of trading using opposite Neogames and Canterbury Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogames position performs unexpectedly, Canterbury Park 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 Canterbury Park will offset losses from the drop in Canterbury Park's long position.| Neogames vs. Accel Entertainment | Neogames vs. PlayAGS | Neogames vs. International Game Technology | Neogames vs. Everi Holdings |
| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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