Correlation Between International Game and LABOCANNA
Can any of the company-specific risk be diversified away by investing in both International Game and LABOCANNA 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 LABOCANNA 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 LABOCANNA SA ZY 10, you can compare the effects of market volatilities on International Game and LABOCANNA 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 LABOCANNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and LABOCANNA.
Diversification Opportunities for International Game and LABOCANNA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and LABOCANNA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and LABOCANNA SA ZY 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LABOCANNA SA ZY 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 LABOCANNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LABOCANNA SA ZY has no effect on the direction of International Game i.e., International Game and LABOCANNA go up and down completely randomly.
Pair Corralation between International Game and LABOCANNA
Assuming the 90 days horizon International Game Technology is expected to under-perform the LABOCANNA. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.04 times less risky than LABOCANNA. The stock trades about -0.02 of its potential returns per unit of risk. The LABOCANNA SA ZY 10 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6.46 in LABOCANNA SA ZY 10 on September 3, 2024 and sell it today you would earn a total of 0.02 from holding LABOCANNA SA ZY 10 or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. LABOCANNA SA ZY 10
Performance |
| Timeline |
| International Game |
| LABOCANNA SA ZY |
International Game and LABOCANNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and LABOCANNA
The main advantage of trading using opposite International Game and LABOCANNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, LABOCANNA 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 LABOCANNA will offset losses from the drop in LABOCANNA's long position.| International Game vs. Aluminum of | International Game vs. HOCHSCHILD MINING | International Game vs. GigaMedia | International Game vs. QINGCI GAMES INC |
| LABOCANNA vs. TRAVEL LEISURE DL 01 | LABOCANNA vs. Mobilezone Holding AG | LABOCANNA vs. Cogent Communications Holdings | LABOCANNA vs. Entravision Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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