Correlation Between Scientific Games and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Reinsurance Group 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 Reinsurance Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Reinsurance Group of, you can compare the effects of market volatilities on Scientific Games and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Reinsurance Group.
Diversification Opportunities for Scientific Games and Reinsurance Group
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scientific and Reinsurance is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Scientific Games i.e., Scientific Games and Reinsurance Group go up and down completely randomly.
Pair Corralation between Scientific Games and Reinsurance Group
Assuming the 90 days horizon Scientific Games is expected to generate 1.24 times less return on investment than Reinsurance Group. In addition to that, Scientific Games is 1.23 times more volatile than Reinsurance Group of. It trades about 0.05 of its total potential returns per unit of risk. Reinsurance Group of is currently generating about 0.07 per unit of volatility. If you would invest 12,353 in Reinsurance Group of on October 11, 2024 and sell it today you would earn a total of 8,447 from holding Reinsurance Group of or generate 68.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Scientific Games vs. Reinsurance Group of
Performance |
| Timeline |
| Scientific Games |
| Reinsurance Group |
Scientific Games and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Reinsurance Group
The main advantage of trading using opposite Scientific Games and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Scientific Games vs. Highlight Communications AG | Scientific Games vs. Charter Communications | Scientific Games vs. SK TELECOM TDADR | Scientific Games vs. TOMBADOR IRON LTD |
| Reinsurance Group vs. CAIRN HOMES EO | Reinsurance Group vs. JAPAN AIRLINES | Reinsurance Group vs. Neinor Homes SA | Reinsurance Group vs. Focus Home Interactive |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |