Correlation Between AGRICULTBK HADR/25 and Scientific Games

Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and Scientific Games 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 AGRICULTBK HADR/25 and Scientific Games into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Scientific Games, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and Scientific Games 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 AGRICULTBK HADR/25 with a short position of Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Scientific Games.

Diversification Opportunities for AGRICULTBK HADR/25 and Scientific Games

-0.55

Correlation Coefficient

AGRICULTBK HADR/25  Scientific Games

Excellent diversification

The 3 months correlation between AGRICULTBK and Scientific is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC are associated (or correlated) with Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Scientific Games go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR/25 and Scientific Games

Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 0.94 times more return on investment than Scientific Games. However, AGRICULTBK HADR25 YC is 1.06 times less risky than Scientific Games. It trades about 0.13 of its potential returns per unit of risk. Scientific Games is currently generating about -0.01 per unit of risk. If you would invest  1,016  in AGRICULTBK HADR25 YC on October 24, 2024 and sell it today you would earn a total of  244.00  from holding AGRICULTBK HADR25 YC or generate 24.02% return on investment over 90 days.

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

AGRICULTBK HADR25 YC  vs.  Scientific Games

AGRICULTBK HADR/25

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR/25 reported solid returns over the last few months and may actually be approaching a breakup point.

Scientific Games

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scientific Games are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Scientific Games is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AGRICULTBK HADR/25 and Scientific Games

The main advantage of trading using opposite AGRICULTBK HADR/25 and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, Scientific Games 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 Scientific Games will offset losses from the drop in Scientific Games' long position.

The idea behind AGRICULTBK HADR25 YC and Scientific Games 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.