Correlation Between KENTIMA HOLDING and International Game
Can any of the company-specific risk be diversified away by investing in both KENTIMA HOLDING 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 KENTIMA HOLDING and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENTIMA HOLDING AB and International Game Technology, you can compare the effects of market volatilities on KENTIMA HOLDING 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 KENTIMA HOLDING with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENTIMA HOLDING and International Game.
Diversification Opportunities for KENTIMA HOLDING and International Game
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KENTIMA and International is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding KENTIMA HOLDING AB and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and KENTIMA HOLDING 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 KENTIMA HOLDING AB 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 KENTIMA HOLDING i.e., KENTIMA HOLDING and International Game go up and down completely randomly.
Pair Corralation between KENTIMA HOLDING and International Game
Assuming the 90 days horizon KENTIMA HOLDING AB is expected to generate 3.58 times more return on investment than International Game. However, KENTIMA HOLDING is 3.58 times more volatile than International Game Technology. It trades about -0.01 of its potential returns per unit of risk. International Game Technology is currently generating about -0.09 per unit of risk. If you would invest 15.00 in KENTIMA HOLDING AB on September 12, 2024 and sell it today you would lose (1.00) from holding KENTIMA HOLDING AB or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KENTIMA HOLDING AB vs. International Game Technology
Performance |
| Timeline |
| KENTIMA HOLDING AB |
| International Game |
KENTIMA HOLDING and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENTIMA HOLDING and International Game
The main advantage of trading using opposite KENTIMA HOLDING and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENTIMA HOLDING 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.| KENTIMA HOLDING vs. Burlington Stores | KENTIMA HOLDING vs. GigaMedia | KENTIMA HOLDING vs. Cleanaway Waste Management | KENTIMA HOLDING vs. FUTURE GAMING GRP |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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