Correlation Between International Games and International CSRC
Can any of the company-specific risk be diversified away by investing in both International Games and International CSRC 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 International CSRC 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 International CSRC Investment, you can compare the effects of market volatilities on International Games and International CSRC 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 International CSRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Games and International CSRC.
Diversification Opportunities for International Games and International CSRC
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and International is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding International Games System and International CSRC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International CSRC 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 International CSRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International CSRC has no effect on the direction of International Games i.e., International Games and International CSRC go up and down completely randomly.
Pair Corralation between International Games and International CSRC
Assuming the 90 days trading horizon International Games System is expected to under-perform the International CSRC. In addition to that, International Games is 2.24 times more volatile than International CSRC Investment. It trades about -0.21 of its total potential returns per unit of risk. International CSRC Investment is currently generating about 0.08 per unit of volatility. If you would invest 1,510 in International CSRC Investment on August 30, 2024 and sell it today you would earn a total of 25.00 from holding International CSRC Investment or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Games System vs. International CSRC Investment
Performance |
| Timeline |
| International Games |
| International CSRC |
International Games and International CSRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Games and International CSRC
The main advantage of trading using opposite International Games and International CSRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Games position performs unexpectedly, International CSRC 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 CSRC will offset losses from the drop in International CSRC's long position.| International Games vs. Sinopac Financial Holdings | International Games vs. Fubon Financial Holding | International Games vs. Chi Hua Fitness | International Games vs. Phytohealth Corp |
| International CSRC vs. Cheng Shin Rubber | International CSRC vs. TSRC Corp | International CSRC vs. Taiwan Cement Corp | International CSRC vs. China Steel Chemical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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