Correlation Between Softstar Entertainment and International Games
Can any of the company-specific risk be diversified away by investing in both Softstar Entertainment 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 Softstar Entertainment and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Softstar Entertainment and International Games System, you can compare the effects of market volatilities on Softstar Entertainment 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 Softstar Entertainment with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Softstar Entertainment and International Games.
Diversification Opportunities for Softstar Entertainment and International Games
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Softstar and International is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Softstar Entertainment and International Games System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Games and Softstar Entertainment 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 Softstar Entertainment 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 Softstar Entertainment i.e., Softstar Entertainment and International Games go up and down completely randomly.
Pair Corralation between Softstar Entertainment and International Games
Assuming the 90 days trading horizon Softstar Entertainment is expected to generate 0.49 times more return on investment than International Games. However, Softstar Entertainment is 2.05 times less risky than International Games. It trades about -0.17 of its potential returns per unit of risk. International Games System is currently generating about -0.18 per unit of risk. If you would invest 6,370 in Softstar Entertainment on August 28, 2024 and sell it today you would lose (250.00) from holding Softstar Entertainment or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Softstar Entertainment vs. International Games System
Performance |
| Timeline |
| Softstar Entertainment |
| International Games |
Softstar Entertainment and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Softstar Entertainment and International Games
The main advantage of trading using opposite Softstar Entertainment and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Softstar Entertainment 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.| Softstar Entertainment vs. International Games System | Softstar Entertainment vs. X Legend Entertainment Co | Softstar Entertainment vs. Fun Yours Technology |
| International Games vs. ReaLy Development Construction | International Games vs. Hung Sheng Construction | International Games vs. WINSON Machinery Co | International Games vs. New Asia Construction |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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