Correlation Between Aspeed Technology and International Games
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology 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 Aspeed Technology and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and International Games System, you can compare the effects of market volatilities on Aspeed Technology 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 Aspeed Technology with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and International Games.
Diversification Opportunities for Aspeed Technology and International Games
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aspeed and International is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and International Games System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Games and Aspeed Technology 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 Aspeed Technology 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 Aspeed Technology i.e., Aspeed Technology and International Games go up and down completely randomly.
Pair Corralation between Aspeed Technology and International Games
Assuming the 90 days trading horizon Aspeed Technology is expected to under-perform the International Games. In addition to that, Aspeed Technology is 1.31 times more volatile than International Games System. It trades about -0.06 of its total potential returns per unit of risk. International Games System is currently generating about 0.13 per unit of volatility. If you would invest 81,000 in International Games System on August 28, 2024 and sell it today you would earn a total of 16,900 from holding International Games System or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. International Games System
Performance |
| Timeline |
| Aspeed Technology |
| International Games |
Aspeed Technology and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and International Games
The main advantage of trading using opposite Aspeed Technology and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology 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.| Aspeed Technology vs. Global Unichip Corp | Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Unimicron Technology Corp | Aspeed Technology vs. Novatek Microelectronics Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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