Correlation Between Jackpot Digital and Real Luck

Can any of the company-specific risk be diversified away by investing in both Jackpot Digital and Real Luck 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 Jackpot Digital and Real Luck into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jackpot Digital and Real Luck Group, you can compare the effects of market volatilities on Jackpot Digital and Real Luck 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 Jackpot Digital with a short position of Real Luck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackpot Digital and Real Luck.

Diversification Opportunities for Jackpot Digital and Real Luck

0.0

Correlation Coefficient

Jackpot Digital  Real Luck

Pay attention - limited upside

The 3 months correlation between Jackpot and Real is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jackpot Digital and Real Luck Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Luck Group and Jackpot Digital 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 Jackpot Digital are associated (or correlated) with Real Luck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Luck Group has no effect on the direction of Jackpot Digital i.e., Jackpot Digital and Real Luck go up and down completely randomly.

Pair Corralation between Jackpot Digital and Real Luck

If you would invest  4.44  in Jackpot Digital on November 28, 2024 and sell it today you would earn a total of  0.16  from holding Jackpot Digital or generate 3.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Jackpot Digital  vs.  Real Luck Group

Jackpot Digital

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jackpot Digital are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jackpot Digital reported solid returns over the last few months and may actually be approaching a breakup point.

Real Luck Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Real Luck Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Real Luck is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jackpot Digital and Real Luck

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

The idea behind Jackpot Digital and Real Luck Group 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.