Correlation Between Scientific Games and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both Scientific Games and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and MEITUAN UNSPADR2B, you can compare the effects of market volatilities on Scientific Games and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and MEITUAN UNSPADR/2B.
Diversification Opportunities for Scientific Games and MEITUAN UNSPADR/2B
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scientific and MEITUAN is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of Scientific Games i.e., Scientific Games and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between Scientific Games and MEITUAN UNSPADR/2B
Assuming the 90 days horizon Scientific Games is expected to generate 1.44 times less return on investment than MEITUAN UNSPADR/2B. But when comparing it to its historical volatility, Scientific Games is 1.92 times less risky than MEITUAN UNSPADR/2B. It trades about 0.06 of its potential returns per unit of risk. MEITUAN UNSPADR2B is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,800 in MEITUAN UNSPADR2B on August 31, 2024 and sell it today you would earn a total of 1,320 from holding MEITUAN UNSPADR2B or generate 47.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Scientific Games vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| Scientific Games |
| MEITUAN UNSPADR/2B |
Scientific Games and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and MEITUAN UNSPADR/2B
The main advantage of trading using opposite Scientific Games and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B's long position.| Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
| MEITUAN UNSPADR/2B vs. Gladstone Investment | MEITUAN UNSPADR/2B vs. CI GAMES SA | MEITUAN UNSPADR/2B vs. Scientific Games | MEITUAN UNSPADR/2B vs. GAMING FAC SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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