Correlation Between Scientific Games and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Sixt Leasing 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 Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Sixt Leasing SE, you can compare the effects of market volatilities on Scientific Games and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Sixt Leasing.
Diversification Opportunities for Scientific Games and Sixt Leasing
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scientific and Sixt is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Scientific Games i.e., Scientific Games and Sixt Leasing go up and down completely randomly.
Pair Corralation between Scientific Games and Sixt Leasing
Assuming the 90 days horizon Scientific Games is expected to generate 1.55 times more return on investment than Sixt Leasing. However, Scientific Games is 1.55 times more volatile than Sixt Leasing SE. It trades about 0.02 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.06 per unit of risk. If you would invest 8,850 in Scientific Games on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Scientific Games or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scientific Games vs. Sixt Leasing SE
Performance |
| Timeline |
| Scientific Games |
| Sixt Leasing SE |
Scientific Games and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Sixt Leasing
The main advantage of trading using opposite Scientific Games and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
| Sixt Leasing vs. Harmony Gold Mining | Sixt Leasing vs. Motorcar Parts of | Sixt Leasing vs. Zijin Mining Group | Sixt Leasing vs. Jacquet Metal Service |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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