Correlation Between Scientific Games and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Scientific Games and PLAYMATES TOYS 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 Scientific Games and PLAYMATES TOYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and PLAYMATES TOYS, you can compare the effects of market volatilities on Scientific Games and PLAYMATES TOYS 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 Scientific Games with a short position of PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and PLAYMATES TOYS.
Diversification Opportunities for Scientific Games and PLAYMATES TOYS
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scientific and PLAYMATES is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS and Scientific Games 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 Scientific Games are associated (or correlated) with PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Scientific Games i.e., Scientific Games and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Scientific Games and PLAYMATES TOYS
Assuming the 90 days horizon Scientific Games is expected to generate 0.16 times more return on investment than PLAYMATES TOYS. However, Scientific Games is 6.22 times less risky than PLAYMATES TOYS. It trades about 0.2 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about -0.05 per unit of risk. If you would invest 8,250 in Scientific Games on October 25, 2024 and sell it today you would earn a total of 300.00 from holding Scientific Games or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scientific Games vs. PLAYMATES TOYS
Performance |
| Timeline |
| Scientific Games |
| PLAYMATES TOYS |
Scientific Games and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and PLAYMATES TOYS
The main advantage of trading using opposite Scientific Games and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| Scientific Games vs. RCS MediaGroup SpA | Scientific Games vs. Mitsui Chemicals | Scientific Games vs. REMEDY ENTERTAINMENT OYJ | Scientific Games vs. CHEMICAL INDUSTRIES |
| PLAYMATES TOYS vs. Iridium Communications | PLAYMATES TOYS vs. Spirent Communications plc | PLAYMATES TOYS vs. Cairo Communication SpA | PLAYMATES TOYS vs. CITIC Telecom International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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