Correlation Between International Games and Easywell Biomedicals
Can any of the company-specific risk be diversified away by investing in both International Games and Easywell Biomedicals 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 International Games and Easywell Biomedicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Games System and Easywell Biomedicals, you can compare the effects of market volatilities on International Games and Easywell Biomedicals 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 International Games with a short position of Easywell Biomedicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Games and Easywell Biomedicals.
Diversification Opportunities for International Games and Easywell Biomedicals
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Easywell is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding International Games System and Easywell Biomedicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easywell Biomedicals and International 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 International Games System are associated (or correlated) with Easywell Biomedicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easywell Biomedicals has no effect on the direction of International Games i.e., International Games and Easywell Biomedicals go up and down completely randomly.
Pair Corralation between International Games and Easywell Biomedicals
Assuming the 90 days trading horizon International Games System is expected to generate 0.49 times more return on investment than Easywell Biomedicals. However, International Games System is 2.05 times less risky than Easywell Biomedicals. It trades about -0.13 of its potential returns per unit of risk. Easywell Biomedicals is currently generating about -0.28 per unit of risk. If you would invest 103,500 in International Games System on September 1, 2024 and sell it today you would lose (7,500) from holding International Games System or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Games System vs. Easywell Biomedicals
Performance |
| Timeline |
| International Games |
| Easywell Biomedicals |
International Games and Easywell Biomedicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Games and Easywell Biomedicals
The main advantage of trading using opposite International Games and Easywell Biomedicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Games position performs unexpectedly, Easywell Biomedicals 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 Easywell Biomedicals will offset losses from the drop in Easywell Biomedicals' long position.| International Games vs. Gamania Digital Entertainment | International Games vs. Soft World International | International Games vs. X Legend Entertainment Co | International Games vs. Userjoy Technology Co |
| Easywell Biomedicals vs. Universal Vision Biotechnology | Easywell Biomedicals vs. Excelsior Medical Co | Easywell Biomedicals vs. Hi Clearance | Easywell Biomedicals vs. Brighten Optix |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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