Correlation Between Scientific Games and WILLIS LEASE
Can any of the company-specific risk be diversified away by investing in both Scientific Games and WILLIS LEASE 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 WILLIS LEASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and WILLIS LEASE FIN, you can compare the effects of market volatilities on Scientific Games and WILLIS LEASE 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 WILLIS LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and WILLIS LEASE.
Diversification Opportunities for Scientific Games and WILLIS LEASE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scientific and WILLIS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and WILLIS LEASE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIS LEASE FIN 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 WILLIS LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIS LEASE FIN has no effect on the direction of Scientific Games i.e., Scientific Games and WILLIS LEASE go up and down completely randomly.
Pair Corralation between Scientific Games and WILLIS LEASE
Assuming the 90 days horizon Scientific Games is expected to generate 0.6 times more return on investment than WILLIS LEASE. However, Scientific Games is 1.66 times less risky than WILLIS LEASE. It trades about 0.03 of its potential returns per unit of risk. WILLIS LEASE FIN is currently generating about -0.05 per unit of risk. If you would invest 8,100 in Scientific Games on October 30, 2024 and sell it today you would earn a total of 50.00 from holding Scientific Games or generate 0.62% 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. WILLIS LEASE FIN
Performance |
| Timeline |
| Scientific Games |
| WILLIS LEASE FIN |
Scientific Games and WILLIS LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and WILLIS LEASE
The main advantage of trading using opposite Scientific Games and WILLIS LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, WILLIS LEASE 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 WILLIS LEASE will offset losses from the drop in WILLIS LEASE's long position.| Scientific Games vs. Acadia Healthcare | Scientific Games vs. PURETECH HEALTH PLC | Scientific Games vs. CARDINAL HEALTH | Scientific Games vs. Sunstone Hotel Investors |
| WILLIS LEASE vs. Easy Software AG | WILLIS LEASE vs. UNIQA INSURANCE GR | WILLIS LEASE vs. X FAB Silicon Foundries | WILLIS LEASE vs. Insurance Australia Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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