Correlation Between Corsair Gaming and International Game
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming 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 Corsair Gaming and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and International Game Technology, you can compare the effects of market volatilities on Corsair Gaming 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 Corsair Gaming with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and International Game.
Diversification Opportunities for Corsair Gaming and International Game
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corsair and International is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming i.e., Corsair Gaming and International Game go up and down completely randomly.
Pair Corralation between Corsair Gaming and International Game
Assuming the 90 days horizon Corsair Gaming is expected to generate 1.69 times more return on investment than International Game. However, Corsair Gaming is 1.69 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 -0.05 per unit of risk. If you would invest 1,202 in Corsair Gaming on November 5, 2024 and sell it today you would lose (310.00) from holding Corsair Gaming or give up 25.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. International Game Technology
Performance |
| Timeline |
| Corsair Gaming |
| International Game |
Corsair Gaming and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and International Game
The main advantage of trading using opposite Corsair Gaming and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming 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.| Corsair Gaming vs. MCEWEN MINING INC | Corsair Gaming vs. WisdomTree Investments | Corsair Gaming vs. Monument Mining Limited | Corsair Gaming vs. Canadian Utilities Limited |
| International Game vs. MICRONIC MYDATA | International Game vs. SILVER BULLET DATA | International Game vs. Nok Airlines PCL | International Game vs. DATAGROUP SE |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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