Correlation Between 888 Holdings and Lottery, Common

Can any of the company-specific risk be diversified away by investing in both 888 Holdings and Lottery, Common 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 888 Holdings and Lottery, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 888 Holdings and Lottery, Common Stock, you can compare the effects of market volatilities on 888 Holdings and Lottery, Common 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 888 Holdings with a short position of Lottery, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and Lottery, Common.

Diversification Opportunities for 888 Holdings and Lottery, Common

0.55

Correlation Coefficient

888 Holdings  Lottery, Common

Very weak diversification

The 3 months correlation between 888 and Lottery, is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings and Lottery, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Common Stock and 888 Holdings 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 888 Holdings are associated (or correlated) with Lottery, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Common Stock has no effect on the direction of 888 Holdings i.e., 888 Holdings and Lottery, Common go up and down completely randomly.

Pair Corralation between 888 Holdings and Lottery, Common

Assuming the 90 days horizon 888 Holdings is expected to generate 13.2 times less return on investment than Lottery, Common. But when comparing it to its historical volatility, 888 Holdings is 8.82 times less risky than Lottery, Common. It trades about 0.11 of its potential returns per unit of risk. Lottery, Common Stock is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Lottery, Common Stock on November 28, 2024 and sell it today you would earn a total of  99.00  from holding Lottery, Common Stock or generate 282.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

888 Holdings  vs.  Lottery, Common Stock

888 Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 888 Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, 888 Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Lottery, Common Stock

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lottery, Common Stock are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Lottery, Common showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 888 Holdings and Lottery, Common

The main advantage of trading using opposite 888 Holdings and Lottery, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings position performs unexpectedly, Lottery, Common 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 Lottery, Common will offset losses from the drop in Lottery, Common's long position.

The idea behind 888 Holdings and Lottery, Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.