Correlation Between Scientific Games and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Thai Beverage 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 Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Thai Beverage Public, you can compare the effects of market volatilities on Scientific Games and Thai Beverage 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Thai Beverage.
Diversification Opportunities for Scientific Games and Thai Beverage
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scientific and Thai is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage Public has no effect on the direction of Scientific Games i.e., Scientific Games and Thai Beverage go up and down completely randomly.
Pair Corralation between Scientific Games and Thai Beverage
Assuming the 90 days horizon Scientific Games is expected to generate 0.96 times more return on investment than Thai Beverage. However, Scientific Games is 1.04 times less risky than Thai Beverage. It trades about 0.04 of its potential returns per unit of risk. Thai Beverage Public is currently generating about -0.03 per unit of risk. If you would invest 8,400 in Scientific Games on August 24, 2024 and sell it today you would earn a total of 150.00 from holding Scientific Games or generate 1.79% 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. Thai Beverage Public
Performance |
| Timeline |
| Scientific Games |
| Thai Beverage Public |
Scientific Games and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Thai Beverage
The main advantage of trading using opposite Scientific Games and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| Scientific Games vs. Natural Health Trends | Scientific Games vs. DiamondRock Hospitality | Scientific Games vs. PLAY2CHILL SA ZY | Scientific Games vs. Universal Display |
| Thai Beverage vs. X FAB Silicon Foundries | Thai Beverage vs. FANDIFI TECHNOLOGY P | Thai Beverage vs. Microchip Technology Incorporated | Thai Beverage vs. MCEWEN MINING INC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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