Correlation Between International Game and Greek Organization
Can any of the company-specific risk be diversified away by investing in both International Game and Greek Organization 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 Greek Organization 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 Greek Organization of, you can compare the effects of market volatilities on International Game and Greek Organization 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 Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Greek Organization.
Diversification Opportunities for International Game and Greek Organization
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Greek is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization 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 Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of International Game i.e., International Game and Greek Organization go up and down completely randomly.
Pair Corralation between International Game and Greek Organization
Assuming the 90 days horizon International Game Technology is expected to under-perform the Greek Organization. In addition to that, International Game is 1.14 times more volatile than Greek Organization of. It trades about -0.01 of its total potential returns per unit of risk. Greek Organization of is currently generating about 0.04 per unit of volatility. If you would invest 1,191 in Greek Organization of on September 4, 2024 and sell it today you would earn a total of 389.00 from holding Greek Organization of or generate 32.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
International Game Technology vs. Greek Organization of
Performance |
| Timeline |
| International Game |
| Greek Organization |
International Game and Greek Organization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Greek Organization
The main advantage of trading using opposite International Game and Greek Organization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Greek Organization 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 Greek Organization will offset losses from the drop in Greek Organization's long position.| International Game vs. Flutter Entertainment PLC | International Game vs. Evolution AB | International Game vs. Churchill Downs Incorporated | International Game vs. Churchill Downs Incorporated |
| Greek Organization vs. Flutter Entertainment PLC | Greek Organization vs. Evolution AB | Greek Organization vs. Churchill Downs Incorporated | Greek Organization vs. Churchill Downs Incorporated |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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