Correlation Between WINSON Machinery and International Games
Can any of the company-specific risk be diversified away by investing in both WINSON Machinery 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 WINSON Machinery and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINSON Machinery Co and International Games System, you can compare the effects of market volatilities on WINSON Machinery 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 WINSON Machinery with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINSON Machinery and International Games.
Diversification Opportunities for WINSON Machinery and International Games
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WINSON and International is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding WINSON Machinery 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 WINSON Machinery 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 WINSON Machinery 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 WINSON Machinery i.e., WINSON Machinery and International Games go up and down completely randomly.
Pair Corralation between WINSON Machinery and International Games
Assuming the 90 days trading horizon WINSON Machinery Co is expected to generate 1.31 times more return on investment than International Games. However, WINSON Machinery is 1.31 times more volatile than International Games System. It trades about 0.02 of its potential returns per unit of risk. International Games System is currently generating about -0.13 per unit of risk. If you would invest 2,000 in WINSON Machinery Co on August 31, 2024 and sell it today you would earn a total of 10.00 from holding WINSON Machinery Co or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WINSON Machinery Co vs. International Games System
Performance |
| Timeline |
| WINSON Machinery |
| International Games |
WINSON Machinery and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WINSON Machinery and International Games
The main advantage of trading using opposite WINSON Machinery and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINSON Machinery 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.| WINSON Machinery vs. First Insurance Co | WINSON Machinery vs. Union Bank of | WINSON Machinery vs. Taichung Commercial Bank | WINSON Machinery vs. Mobiletron Electronics Co |
| International Games vs. Gamania Digital Entertainment | International Games vs. Soft World International | International Games vs. Softstar Entertainment | International Games vs. X Legend Entertainment Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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