Correlation Between International Game and Apple
Can any of the company-specific risk be diversified away by investing in both International Game and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on International Game and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Apple.
Diversification Opportunities for International Game and Apple
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Apple is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of International Game i.e., International Game and Apple go up and down completely randomly.
Pair Corralation between International Game and Apple
Assuming the 90 days horizon International Game Technology is expected to under-perform the Apple. In addition to that, International Game is 2.14 times more volatile than Apple Inc. It trades about -0.11 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.11 per unit of volatility. If you would invest 21,604 in Apple Inc on August 28, 2024 and sell it today you would earn a total of 531.00 from holding Apple Inc or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Apple Inc
Performance |
| Timeline |
| International Game |
| Apple Inc |
International Game and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Apple
The main advantage of trading using opposite International Game and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| International Game vs. CDN IMPERIAL BANK | International Game vs. Luckin Coffee | International Game vs. REVO INSURANCE SPA | International Game vs. VARIOUS EATERIES LS |
| Apple vs. Playa Hotels Resorts | Apple vs. HYATT HOTELS A | Apple vs. Hochschild Mining plc | Apple vs. International Game Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |