Correlation Between International Game and KENTIMA HOLDING
Can any of the company-specific risk be diversified away by investing in both International Game and KENTIMA HOLDING 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 KENTIMA HOLDING 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 KENTIMA HOLDING AB, you can compare the effects of market volatilities on International Game and KENTIMA HOLDING 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 KENTIMA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and KENTIMA HOLDING.
Diversification Opportunities for International Game and KENTIMA HOLDING
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and KENTIMA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and KENTIMA HOLDING AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENTIMA HOLDING AB 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 KENTIMA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENTIMA HOLDING AB has no effect on the direction of International Game i.e., International Game and KENTIMA HOLDING go up and down completely randomly.
Pair Corralation between International Game and KENTIMA HOLDING
Assuming the 90 days horizon International Game Technology is expected to under-perform the KENTIMA HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 4.04 times less risky than KENTIMA HOLDING. The stock trades about -0.01 of its potential returns per unit of risk. The KENTIMA HOLDING AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12.00 in KENTIMA HOLDING AB on September 12, 2024 and sell it today you would earn a total of 2.00 from holding KENTIMA HOLDING AB or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
International Game Technology vs. KENTIMA HOLDING AB
Performance |
| Timeline |
| International Game |
| KENTIMA HOLDING AB |
International Game and KENTIMA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and KENTIMA HOLDING
The main advantage of trading using opposite International Game and KENTIMA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, KENTIMA HOLDING 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 KENTIMA HOLDING will offset losses from the drop in KENTIMA HOLDING's long position.| International Game vs. Scientific Games | International Game vs. Superior Plus Corp | International Game vs. SIVERS SEMICONDUCTORS AB | International Game vs. NorAm Drilling AS |
| KENTIMA HOLDING vs. Burlington Stores | KENTIMA HOLDING vs. GigaMedia | KENTIMA HOLDING vs. Cleanaway Waste Management | KENTIMA HOLDING vs. FUTURE GAMING GRP |
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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