Correlation Between International Game and CONTAGIOUS GAMING
Can any of the company-specific risk be diversified away by investing in both International Game and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING 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 CONTAGIOUS GAMING INC, you can compare the effects of market volatilities on International Game and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and CONTAGIOUS GAMING.
Diversification Opportunities for International Game and CONTAGIOUS GAMING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and CONTAGIOUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and CONTAGIOUS GAMING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONTAGIOUS GAMING 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 CONTAGIOUS GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONTAGIOUS GAMING INC has no effect on the direction of International Game i.e., International Game and CONTAGIOUS GAMING go up and down completely randomly.
Pair Corralation between International Game and CONTAGIOUS GAMING
Assuming the 90 days horizon International Game Technology is expected to under-perform the CONTAGIOUS GAMING. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 56.64 times less risky than CONTAGIOUS GAMING. The stock trades about -0.01 of its potential returns per unit of risk. The CONTAGIOUS GAMING INC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.35 in CONTAGIOUS GAMING INC on October 11, 2024 and sell it today you would lose (0.05) from holding CONTAGIOUS GAMING INC or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
International Game Technology vs. CONTAGIOUS GAMING INC
Performance |
| Timeline |
| International Game |
| CONTAGIOUS GAMING INC |
International Game and CONTAGIOUS GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and CONTAGIOUS GAMING
The main advantage of trading using opposite International Game and CONTAGIOUS GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, CONTAGIOUS GAMING 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 CONTAGIOUS GAMING will offset losses from the drop in CONTAGIOUS GAMING's long position.| International Game vs. AGRICULTBK HADR25 YC | International Game vs. Australian Agricultural | International Game vs. YATRA ONLINE DL 0001 | International Game vs. NorAm Drilling AS |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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