Correlation Between Neogames and Gambling
Can any of the company-specific risk be diversified away by investing in both Neogames and Gambling 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 Gambling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogames SA and Gambling Group, you can compare the effects of market volatilities on Neogames and Gambling 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 Gambling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogames and Gambling.
Diversification Opportunities for Neogames and Gambling
Poor diversification
The 3 months correlation between Neogames and Gambling is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Neogames SA and Gambling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gambling Group 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 Gambling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gambling Group has no effect on the direction of Neogames i.e., Neogames and Gambling go up and down completely randomly.
Pair Corralation between Neogames and Gambling
If you would invest 2,709 in Neogames SA on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Neogames SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Neogames SA vs. Gambling Group
Performance |
| Timeline |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gambling Group |
Neogames and Gambling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogames and Gambling
The main advantage of trading using opposite Neogames and Gambling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogames position performs unexpectedly, Gambling 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 Gambling will offset losses from the drop in Gambling's long position.| Neogames vs. Accel Entertainment | Neogames vs. PlayAGS | Neogames vs. International Game Technology | Neogames vs. Everi Holdings |
| Gambling vs. Codere Online Corp | Gambling vs. Accel Entertainment | Gambling vs. PlayAGS | Gambling vs. Canterbury Park Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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