Correlation Between Scientific Games and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Jacquet Metal Service, you can compare the effects of market volatilities on Scientific Games and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Jacquet Metal.
Diversification Opportunities for Scientific Games and Jacquet Metal
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scientific and Jacquet is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Scientific Games i.e., Scientific Games and Jacquet Metal go up and down completely randomly.
Pair Corralation between Scientific Games and Jacquet Metal
Assuming the 90 days horizon Scientific Games is expected to generate 1.29 times more return on investment than Jacquet Metal. However, Scientific Games is 1.29 times more volatile than Jacquet Metal Service. It trades about 0.04 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.02 per unit of risk. If you would invest 6,700 in Scientific Games on September 26, 2024 and sell it today you would earn a total of 1,400 from holding Scientific Games or generate 20.9% 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. Jacquet Metal Service
Performance |
Timeline |
Scientific Games |
Jacquet Metal Service |
Scientific Games and Jacquet Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scientific Games and Jacquet Metal
The main advantage of trading using opposite Scientific Games and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
Jacquet Metal vs. AGNC INVESTMENT | Jacquet Metal vs. REINET INVESTMENTS SCA | Jacquet Metal vs. Hochschild Mining plc | Jacquet Metal vs. Scientific Games |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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