Correlation Between International Game and Corporate Office
Can any of the company-specific risk be diversified away by investing in both International Game and Corporate Office 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 Corporate Office 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 Corporate Office Properties, you can compare the effects of market volatilities on International Game and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Corporate Office.
Diversification Opportunities for International Game and Corporate Office
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Corporate is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of International Game i.e., International Game and Corporate Office go up and down completely randomly.
Pair Corralation between International Game and Corporate Office
Assuming the 90 days horizon International Game Technology is expected to under-perform the Corporate Office. In addition to that, International Game is 2.06 times more volatile than Corporate Office Properties. It trades about -0.02 of its total potential returns per unit of risk. Corporate Office Properties is currently generating about 0.15 per unit of volatility. If you would invest 2,493 in Corporate Office Properties on September 21, 2024 and sell it today you would earn a total of 507.00 from holding Corporate Office Properties or generate 20.34% 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. Corporate Office Properties
Performance |
| Timeline |
| International Game |
| Corporate Office Pro |
International Game and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Corporate Office
The main advantage of trading using opposite International Game and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office'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 |
| Corporate Office vs. Transport International Holdings | Corporate Office vs. CAREER EDUCATION | Corporate Office vs. Xinhua Winshare Publishing | Corporate Office vs. American Public Education |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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