Correlation Between International Game and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both International Game and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA, you can compare the effects of market volatilities on International Game and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and ATRESMEDIA.
Diversification Opportunities for International Game and ATRESMEDIA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and ATRESMEDIA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of International Game i.e., International Game and ATRESMEDIA go up and down completely randomly.
Pair Corralation between International Game and ATRESMEDIA
Assuming the 90 days horizon International Game Technology is expected to under-perform the ATRESMEDIA. In addition to that, International Game is 3.06 times more volatile than ATRESMEDIA. It trades about -0.02 of its total potential returns per unit of risk. ATRESMEDIA is currently generating about 0.19 per unit of volatility. If you would invest 437.00 in ATRESMEDIA on September 4, 2024 and sell it today you would earn a total of 15.00 from holding ATRESMEDIA or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Game Technology vs. ATRESMEDIA
Performance |
| Timeline |
| International Game |
| ATRESMEDIA |
International Game and ATRESMEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and ATRESMEDIA
The main advantage of trading using opposite International Game and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA'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 |
| ATRESMEDIA vs. TROPHY GAMES DEV | ATRESMEDIA vs. ANGLER GAMING PLC | ATRESMEDIA vs. International Game Technology | ATRESMEDIA vs. Hochschild Mining plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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