Correlation Between International Game and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both International Game and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on International Game and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and EIDESVIK OFFSHORE.
Diversification Opportunities for International Game and EIDESVIK OFFSHORE
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and EIDESVIK is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of International Game i.e., International Game and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between International Game and EIDESVIK OFFSHORE
Assuming the 90 days horizon International Game Technology is expected to under-perform the EIDESVIK OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.5 times less risky than EIDESVIK OFFSHORE. The stock trades about -0.14 of its potential returns per unit of risk. The EIDESVIK OFFSHORE NK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 110.00 in EIDESVIK OFFSHORE NK on November 2, 2024 and sell it today you would earn a total of 2.00 from holding EIDESVIK OFFSHORE NK or generate 1.82% 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. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| International Game |
| EIDESVIK OFFSHORE |
International Game and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and EIDESVIK OFFSHORE
The main advantage of trading using opposite International Game and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| International Game vs. Flutter Entertainment PLC | International Game vs. Churchill Downs Incorporated | International Game vs. Scientific Games |
| EIDESVIK OFFSHORE vs. Wayside Technology Group | EIDESVIK OFFSHORE vs. DXC Technology Co | EIDESVIK OFFSHORE vs. Easy Software AG | EIDESVIK OFFSHORE vs. Ribbon 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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