Correlation Between International Game and Toro
Can any of the company-specific risk be diversified away by investing in both International Game and Toro 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 Toro 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 Toro Co, you can compare the effects of market volatilities on International Game and Toro 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 Toro. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Toro.
Diversification Opportunities for International Game and Toro
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Toro is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Toro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toro 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 Toro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toro has no effect on the direction of International Game i.e., International Game and Toro go up and down completely randomly.
Pair Corralation between International Game and Toro
Assuming the 90 days horizon International Game Technology is expected to under-perform the Toro. In addition to that, International Game is 1.01 times more volatile than Toro Co. It trades about -0.03 of its total potential returns per unit of risk. Toro Co is currently generating about 0.02 per unit of volatility. If you would invest 7,618 in Toro Co on September 14, 2024 and sell it today you would earn a total of 622.00 from holding Toro Co or generate 8.16% 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. Toro Co
Performance |
| Timeline |
| International Game |
| Toro |
International Game and Toro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Toro
The main advantage of trading using opposite International Game and Toro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Toro 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 Toro will offset losses from the drop in Toro's long position.| International Game vs. Scientific Games | International Game vs. Superior Plus Corp | International Game vs. SIVERS SEMICONDUCTORS AB | International Game vs. NorAm Drilling AS |
| Toro vs. Penn National Gaming | Toro vs. International Game Technology | Toro vs. GameStop Corp | Toro vs. MINCO SILVER |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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