Correlation Between Neogames and Inspired Entertainment
Can any of the company-specific risk be diversified away by investing in both Neogames and Inspired Entertainment 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 Inspired Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogames SA and Inspired Entertainment, you can compare the effects of market volatilities on Neogames and Inspired Entertainment 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 Inspired Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogames and Inspired Entertainment.
Diversification Opportunities for Neogames and Inspired Entertainment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neogames and Inspired is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Neogames SA and Inspired Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspired Entertainment 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 Inspired Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspired Entertainment has no effect on the direction of Neogames i.e., Neogames and Inspired Entertainment go up and down completely randomly.
Pair Corralation between Neogames and Inspired Entertainment
If you would invest 904.00 in Inspired Entertainment on August 24, 2024 and sell it today you would earn a total of 91.00 from holding Inspired Entertainment or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Neogames SA vs. Inspired Entertainment
Performance |
| Timeline |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inspired Entertainment |
Neogames and Inspired Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogames and Inspired Entertainment
The main advantage of trading using opposite Neogames and Inspired Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogames position performs unexpectedly, Inspired Entertainment 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 Inspired Entertainment will offset losses from the drop in Inspired Entertainment's long position.| Neogames vs. Accel Entertainment | Neogames vs. PlayAGS | Neogames vs. International Game Technology | Neogames vs. Everi Holdings |
| Inspired Entertainment vs. Canterbury Park Holding | Inspired Entertainment vs. Accel Entertainment | Inspired Entertainment vs. Gambling Group | Inspired Entertainment vs. PlayAGS |
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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