Correlation Between International Game and G III
Can any of the company-specific risk be diversified away by investing in both International Game and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on International Game and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and G III.
Diversification Opportunities for International Game and G III
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and GI4 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of International Game i.e., International Game and G III go up and down completely randomly.
Pair Corralation between International Game and G III
Assuming the 90 days horizon International Game Technology is expected to under-perform the G III. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.91 times less risky than G III. The stock trades about -0.09 of its potential returns per unit of risk. The G III Apparel Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,380 in G III Apparel Group on November 2, 2024 and sell it today you would earn a total of 780.00 from holding G III Apparel Group or generate 32.77% 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. G III Apparel Group
Performance |
| Timeline |
| International Game |
| G III Apparel |
International Game and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and G III
The main advantage of trading using opposite International Game and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| International Game vs. Flutter Entertainment PLC | International Game vs. Churchill Downs Incorporated | International Game vs. La Franaise des | International Game vs. Scientific Games |
| G III vs. SILVER BULLET DATA | G III vs. Apollo Investment Corp | G III vs. Extra Space Storage | G III vs. TERADATA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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