Correlation Between Scientific Games and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Scientific Games and KENEDIX OFFICE 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 KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and KENEDIX OFFICE INV, you can compare the effects of market volatilities on Scientific Games and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and KENEDIX OFFICE.
Diversification Opportunities for Scientific Games and KENEDIX OFFICE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scientific and KENEDIX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Scientific Games i.e., Scientific Games and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Scientific Games and KENEDIX OFFICE
Assuming the 90 days horizon Scientific Games is expected to under-perform the KENEDIX OFFICE. But the stock apears to be less risky and, when comparing its historical volatility, Scientific Games is 1.4 times less risky than KENEDIX OFFICE. The stock trades about -0.38 of its potential returns per unit of risk. The KENEDIX OFFICE INV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 89,000 in KENEDIX OFFICE INV on October 10, 2024 and sell it today you would earn a total of 2,500 from holding KENEDIX OFFICE INV or generate 2.81% 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. KENEDIX OFFICE INV
Performance |
| Timeline |
| Scientific Games |
| KENEDIX OFFICE INV |
Scientific Games and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and KENEDIX OFFICE
The main advantage of trading using opposite Scientific Games and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| Scientific Games vs. ELMOS SEMICONDUCTOR | Scientific Games vs. BE Semiconductor Industries | Scientific Games vs. Solstad Offshore ASA | Scientific Games vs. NXP Semiconductors NV |
| KENEDIX OFFICE vs. PULSION Medical Systems | KENEDIX OFFICE vs. Merit Medical Systems | KENEDIX OFFICE vs. BOSTON BEER A | KENEDIX OFFICE vs. Genertec Universal Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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