Correlation Between FarGlory Hotel and International Games
Can any of the company-specific risk be diversified away by investing in both FarGlory Hotel and International 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 FarGlory Hotel and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FarGlory Hotel Co and International Games System, you can compare the effects of market volatilities on FarGlory Hotel and International 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 FarGlory Hotel with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of FarGlory Hotel and International Games.
Diversification Opportunities for FarGlory Hotel and International Games
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FarGlory and International is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding FarGlory Hotel Co and International Games System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Games and FarGlory Hotel 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 FarGlory Hotel Co are associated (or correlated) with International Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Games has no effect on the direction of FarGlory Hotel i.e., FarGlory Hotel and International Games go up and down completely randomly.
Pair Corralation between FarGlory Hotel and International Games
Assuming the 90 days trading horizon FarGlory Hotel Co is expected to generate 1.37 times more return on investment than International Games. However, FarGlory Hotel is 1.37 times more volatile than International Games System. It trades about 0.01 of its potential returns per unit of risk. International Games System is currently generating about -0.21 per unit of risk. If you would invest 2,475 in FarGlory Hotel Co on October 13, 2024 and sell it today you would earn a total of 5.00 from holding FarGlory Hotel Co or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FarGlory Hotel Co vs. International Games System
Performance |
| Timeline |
| FarGlory Hotel |
| International Games |
FarGlory Hotel and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FarGlory Hotel and International Games
The main advantage of trading using opposite FarGlory Hotel and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FarGlory Hotel position performs unexpectedly, International 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 International Games will offset losses from the drop in International Games' long position.| FarGlory Hotel vs. Ambassador Hotel | FarGlory Hotel vs. Lion Travel Service | FarGlory Hotel vs. Chateau International Development | FarGlory Hotel vs. First Hotel Co |
| International Games vs. PlayNitride | International Games vs. FarGlory Hotel Co | International Games vs. HOYA Resort Hotel | International Games vs. Sporton International |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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