Correlation Between Neinor Homes and International Game
Can any of the company-specific risk be diversified away by investing in both Neinor Homes and International Game 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 Neinor Homes and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neinor Homes SA and International Game Technology, you can compare the effects of market volatilities on Neinor Homes and International Game 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 Neinor Homes with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and International Game.
Diversification Opportunities for Neinor Homes and International Game
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neinor and International is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SA and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Neinor Homes 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 Neinor Homes SA are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Neinor Homes i.e., Neinor Homes and International Game go up and down completely randomly.
Pair Corralation between Neinor Homes and International Game
Assuming the 90 days trading horizon Neinor Homes SA is expected to generate 0.66 times more return on investment than International Game. However, Neinor Homes SA is 1.52 times less risky than International Game. It trades about 0.13 of its potential returns per unit of risk. International Game Technology is currently generating about -0.02 per unit of risk. If you would invest 1,273 in Neinor Homes SA on September 21, 2024 and sell it today you would earn a total of 297.00 from holding Neinor Homes SA or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neinor Homes SA vs. International Game Technology
Performance |
| Timeline |
| Neinor Homes SA |
| International Game |
Neinor Homes and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neinor Homes and International Game
The main advantage of trading using opposite Neinor Homes and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc |
| International Game vs. Scientific Games | International Game vs. Superior Plus Corp | International Game vs. SIVERS SEMICONDUCTORS AB | International Game vs. NorAm Drilling AS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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