Correlation Between BTC Digital and International Game
Can any of the company-specific risk be diversified away by investing in both BTC Digital and International Game 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 BTC Digital and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Digital and International Game Technology, you can compare the effects of market volatilities on BTC Digital and International Game 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 BTC Digital with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Digital and International Game.
Diversification Opportunities for BTC Digital and International Game
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTC and International is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BTC Digital and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and BTC Digital 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 BTC Digital are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of BTC Digital i.e., BTC Digital and International Game go up and down completely randomly.
Pair Corralation between BTC Digital and International Game
Assuming the 90 days horizon BTC Digital is expected to generate 29.24 times more return on investment than International Game. However, BTC Digital is 29.24 times more volatile than International Game Technology. It trades about 0.26 of its potential returns per unit of risk. International Game Technology is currently generating about -0.24 per unit of risk. If you would invest 2.00 in BTC Digital on August 27, 2024 and sell it today you would earn a total of 4.15 from holding BTC Digital or generate 207.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTC Digital vs. International Game Technology
Performance |
| Timeline |
| BTC Digital |
| International Game |
BTC Digital and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Digital and International Game
The main advantage of trading using opposite BTC Digital and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Digital position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| BTC Digital vs. Bright Horizons Family | BTC Digital vs. Smart Share Global | BTC Digital vs. Mister Car Wash | BTC Digital vs. Rollins |
| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |