Correlation Between Scancell Hldgs and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Scancell Hldgs and Evolution 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 Scancell Hldgs and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scancell Hldgs Plc and Evolution Gaming Group, you can compare the effects of market volatilities on Scancell Hldgs and Evolution 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 Scancell Hldgs with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scancell Hldgs and Evolution Gaming.
Diversification Opportunities for Scancell Hldgs and Evolution Gaming
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scancell and Evolution is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Scancell Hldgs Plc and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and Scancell Hldgs 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 Scancell Hldgs Plc are associated (or correlated) with Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Scancell Hldgs i.e., Scancell Hldgs and Evolution Gaming go up and down completely randomly.
Pair Corralation between Scancell Hldgs and Evolution Gaming
Assuming the 90 days trading horizon Scancell Hldgs Plc is expected to under-perform the Evolution Gaming. In addition to that, Scancell Hldgs is 2.71 times more volatile than Evolution Gaming Group. It trades about -0.3 of its total potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.24 per unit of volatility. If you would invest 98,785 in Evolution Gaming Group on September 21, 2024 and sell it today you would lose (8,305) from holding Evolution Gaming Group or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scancell Hldgs Plc vs. Evolution Gaming Group
Performance |
| Timeline |
| Scancell Hldgs Plc |
| Evolution Gaming |
Scancell Hldgs and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scancell Hldgs and Evolution Gaming
The main advantage of trading using opposite Scancell Hldgs and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scancell Hldgs position performs unexpectedly, Evolution 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Scancell Hldgs vs. Evolution Gaming Group | Scancell Hldgs vs. BW Offshore | Scancell Hldgs vs. Accsys Technologies PLC | Scancell Hldgs vs. Hochschild Mining plc |
| Evolution Gaming vs. Samsung Electronics Co | Evolution Gaming vs. Samsung Electronics Co | Evolution Gaming vs. Hyundai Motor | Evolution Gaming vs. Reliance Industries Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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