Correlation Between Table Trac and Scientific Industries
Can any of the company-specific risk be diversified away by investing in both Table Trac and Scientific Industries 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 Table Trac and Scientific Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Table Trac and Scientific Industries, you can compare the effects of market volatilities on Table Trac and Scientific Industries 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 Table Trac with a short position of Scientific Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Table Trac and Scientific Industries.
Diversification Opportunities for Table Trac and Scientific Industries
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Table and Scientific is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Table Trac and Scientific Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Industries and Table Trac 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 Table Trac are associated (or correlated) with Scientific Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Industries has no effect on the direction of Table Trac i.e., Table Trac and Scientific Industries go up and down completely randomly.
Pair Corralation between Table Trac and Scientific Industries
Given the investment horizon of 90 days Table Trac is expected to generate 0.52 times more return on investment than Scientific Industries. However, Table Trac is 1.92 times less risky than Scientific Industries. It trades about 0.01 of its potential returns per unit of risk. Scientific Industries is currently generating about -0.02 per unit of risk. If you would invest 415.00 in Table Trac on September 2, 2024 and sell it today you would lose (15.00) from holding Table Trac or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.4% |
| Values | Daily Returns |
Table Trac vs. Scientific Industries
Performance |
| Timeline |
| Table Trac |
| Scientific Industries |
Table Trac and Scientific Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Table Trac and Scientific Industries
The main advantage of trading using opposite Table Trac and Scientific Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Table Trac position performs unexpectedly, Scientific Industries 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 Scientific Industries will offset losses from the drop in Scientific Industries' long position.| Table Trac vs. Las Vegas Sands | Table Trac vs. MGM Resorts International | Table Trac vs. Caesars Entertainment | Table Trac vs. Wynn Resorts Limited |
| Scientific Industries vs. Solitron Devices | Scientific Industries vs. Micropac Industries | Scientific Industries vs. Ieh Corp | Scientific Industries vs. SCI Engineered Materials |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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