Correlation Between Scout Gaming and Raketech Group
Can any of the company-specific risk be diversified away by investing in both Scout Gaming and Raketech Group 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 Scout Gaming and Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Gaming Group and Raketech Group Holding, you can compare the effects of market volatilities on Scout Gaming and Raketech Group 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 Scout Gaming with a short position of Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Gaming and Raketech Group.
Diversification Opportunities for Scout Gaming and Raketech Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scout and Raketech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Scout Gaming Group and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding and Scout Gaming 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 Scout Gaming Group are associated (or correlated) with Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Scout Gaming i.e., Scout Gaming and Raketech Group go up and down completely randomly.
Pair Corralation between Scout Gaming and Raketech Group
Assuming the 90 days trading horizon Scout Gaming Group is expected to generate 1.21 times more return on investment than Raketech Group. However, Scout Gaming is 1.21 times more volatile than Raketech Group Holding. It trades about -0.02 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.23 per unit of risk. If you would invest 30.00 in Scout Gaming Group on August 31, 2024 and sell it today you would lose (3.00) from holding Scout Gaming Group or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scout Gaming Group vs. Raketech Group Holding
Performance |
| Timeline |
| Scout Gaming Group |
| Raketech Group Holding |
Scout Gaming and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Gaming and Raketech Group
The main advantage of trading using opposite Scout Gaming and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Gaming position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group's long position.| Scout Gaming vs. Catena Media plc | Scout Gaming vs. Kambi Group PLC | Scout Gaming vs. Better Collective | Scout Gaming vs. Betsson AB |
| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
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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