Correlation Between Scientific Games and Hongkong
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Hongkong 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 Hongkong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and The Hongkong and, you can compare the effects of market volatilities on Scientific Games and Hongkong 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 Hongkong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Hongkong.
Diversification Opportunities for Scientific Games and Hongkong
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scientific and Hongkong is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and The Hongkong and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hongkong 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 Hongkong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hongkong has no effect on the direction of Scientific Games i.e., Scientific Games and Hongkong go up and down completely randomly.
Pair Corralation between Scientific Games and Hongkong
Assuming the 90 days horizon Scientific Games is expected to generate 1.34 times more return on investment than Hongkong. However, Scientific Games is 1.34 times more volatile than The Hongkong and. It trades about -0.05 of its potential returns per unit of risk. The Hongkong and is currently generating about -0.31 per unit of risk. If you would invest 8,450 in Scientific Games on October 19, 2024 and sell it today you would lose (100.00) from holding Scientific Games or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scientific Games vs. The Hongkong and
Performance |
| Timeline |
| Scientific Games |
| The Hongkong |
Scientific Games and Hongkong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Hongkong
The main advantage of trading using opposite Scientific Games and Hongkong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Hongkong 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 Hongkong will offset losses from the drop in Hongkong's long position.| Scientific Games vs. DICKS Sporting Goods | Scientific Games vs. Gaztransport Technigaz SA | Scientific Games vs. CONTAGIOUS GAMING INC | Scientific Games vs. SCIENCE IN SPORT |
| Hongkong vs. Scientific Games | Hongkong vs. UNIVMUSIC GRPADR050 | Hongkong vs. DETALION GAMES SA | Hongkong vs. Axway Software 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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