Correlation Between International Game and AXA SA
Can any of the company-specific risk be diversified away by investing in both International Game and AXA SA 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 AXA SA 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 AXA SA, you can compare the effects of market volatilities on International Game and AXA SA 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 AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and AXA SA.
Diversification Opportunities for International Game and AXA SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and AXA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA 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 AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of International Game i.e., International Game and AXA SA go up and down completely randomly.
Pair Corralation between International Game and AXA SA
Assuming the 90 days horizon International Game is expected to generate 5.69 times less return on investment than AXA SA. In addition to that, International Game is 1.59 times more volatile than AXA SA. It trades about 0.03 of its total potential returns per unit of risk. AXA SA is currently generating about 0.26 per unit of volatility. If you would invest 3,409 in AXA SA on October 25, 2024 and sell it today you would earn a total of 165.00 from holding AXA SA or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. AXA SA
Performance |
| Timeline |
| International Game |
| AXA SA |
International Game and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and AXA SA
The main advantage of trading using opposite International Game and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.| International Game vs. SEI INVESTMENTS | International Game vs. SLR Investment Corp | International Game vs. ECHO INVESTMENT ZY | International Game vs. SIEM OFFSHORE NEW |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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