Correlation Between Scout Gaming and Raketech Group

Can any of the company-specific risk be diversified away by investing in both Scout Gaming and Raketech Group 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 Scout Gaming and Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Scout Gaming and Raketech Group

0.09

Correlation Coefficient

Scout Gaming  Raketech Group

Significant diversification

The 3 months correlation between Scout and Raketech is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Scout Gaming Group and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding and Scout Gaming 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 Scout Gaming Group are associated (or correlated) with Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Scout Gaming i.e., Scout Gaming and Raketech Group go up and down completely randomly.

Pair Corralation between Scout Gaming and Raketech Group

Assuming the 90 days trading horizon Scout Gaming Group is expected to generate 1.55 times more return on investment than Raketech Group. However, Scout Gaming is 1.55 times more volatile than Raketech Group Holding. It trades about 0.02 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.1 per unit of risk. If you would invest  20.00  in Scout Gaming Group on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Scout Gaming Group or generate 0.0% return on investment over 90 days.

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

Scout Gaming Group  vs.  Raketech Group Holding

Scout Gaming Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scout Gaming Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Scout Gaming may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Raketech Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raketech Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Scout Gaming and Raketech Group

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

The idea behind Scout Gaming Group and Raketech Group Holding 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.