Correlation Between International Games and K Way
Can any of the company-specific risk be diversified away by investing in both International Games and K Way 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 K Way 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 K Way Information, you can compare the effects of market volatilities on International Games and K Way 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 K Way. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Games and K Way.
Diversification Opportunities for International Games and K Way
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and 5201 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding International Games System and K Way Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Way Information 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 K Way. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Way Information has no effect on the direction of International Games i.e., International Games and K Way go up and down completely randomly.
Pair Corralation between International Games and K Way
Assuming the 90 days trading horizon International Games System is expected to under-perform the K Way. But the stock apears to be less risky and, when comparing its historical volatility, International Games System is 1.39 times less risky than K Way. The stock trades about -0.21 of its potential returns per unit of risk. The K Way Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,835 in K Way Information on October 13, 2024 and sell it today you would earn a total of 0.00 from holding K Way Information or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Games System vs. K Way Information
Performance |
| Timeline |
| International Games |
| K Way Information |
International Games and K Way Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Games and K Way
The main advantage of trading using opposite International Games and K Way positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Games position performs unexpectedly, K Way 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 K Way will offset losses from the drop in K Way's long position.| International Games vs. PlayNitride | International Games vs. FarGlory Hotel Co | International Games vs. HOYA Resort Hotel | International Games vs. Sporton International |
| K Way vs. Central Reinsurance Corp | K Way vs. Sunmax Biotechnology Co | K Way vs. GeneReach Biotechnology | K Way vs. Mega Financial Holding |
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 Stocks Directory module to find actively traded stocks across global markets.
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