Correlation Between International Game and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both International Game and Neinor Homes 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 International Game and Neinor Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Neinor Homes SA, you can compare the effects of market volatilities on International Game and Neinor Homes 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 International Game with a short position of Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Neinor Homes.
Diversification Opportunities for International Game and Neinor Homes
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and Neinor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA and International Game 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 International Game Technology are associated (or correlated) with Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of International Game i.e., International Game and Neinor Homes go up and down completely randomly.
Pair Corralation between International Game and Neinor Homes
Assuming the 90 days horizon International Game Technology is expected to under-perform the Neinor Homes. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.03 times less risky than Neinor Homes. The stock trades about -0.11 of its potential returns per unit of risk. The Neinor Homes SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,472 in Neinor Homes SA on January 16, 2025 and sell it today you would lose (58.00) from holding Neinor Homes SA or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Neinor Homes SA
Performance |
| Timeline |
| International Game |
| Neinor Homes SA |
International Game and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Neinor Homes
The main advantage of trading using opposite International Game and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| International Game vs. SPECTRAL MEDICAL | International Game vs. Peijia Medical Limited | International Game vs. Darden Restaurants | International Game vs. Advanced Medical Solutions |
| Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |