Correlation Between Scientific Games and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both Scientific Games and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and CEOTRONICS, you can compare the effects of market volatilities on Scientific Games and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and CEOTRONICS (CEKSG).
Diversification Opportunities for Scientific Games and CEOTRONICS (CEKSG)
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Scientific and CEOTRONICS is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of Scientific Games i.e., Scientific Games and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between Scientific Games and CEOTRONICS (CEKSG)
Assuming the 90 days horizon Scientific Games is expected to under-perform the CEOTRONICS (CEKSG). But the stock apears to be less risky and, when comparing its historical volatility, Scientific Games is 1.81 times less risky than CEOTRONICS (CEKSG). The stock trades about -0.31 of its potential returns per unit of risk. The CEOTRONICS is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 630.00 in CEOTRONICS on October 14, 2024 and sell it today you would lose (30.00) from holding CEOTRONICS or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scientific Games vs. CEOTRONICS
Performance |
| Timeline |
| Scientific Games |
| CEOTRONICS (CEKSG) |
Scientific Games and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and CEOTRONICS (CEKSG)
The main advantage of trading using opposite Scientific Games and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| Scientific Games vs. ALTAIR RES INC | Scientific Games vs. DELTA AIR LINES | Scientific Games vs. Corsair Gaming | Scientific Games vs. Fair Isaac Corp |
| CEOTRONICS (CEKSG) vs. HOCHSCHILD MINING | CEOTRONICS (CEKSG) vs. CONTAGIOUS GAMING INC | CEOTRONICS (CEKSG) vs. Media and Games | CEOTRONICS (CEKSG) vs. Scientific Games |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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