Correlation Between Canterbury Park and International Game
Can any of the company-specific risk be diversified away by investing in both Canterbury Park 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 Canterbury Park and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canterbury Park Holding and International Game Technology, you can compare the effects of market volatilities on Canterbury Park 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 Canterbury Park with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and International Game.
Diversification Opportunities for Canterbury Park and International Game
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canterbury and International is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Canterbury Park 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 Canterbury Park Holding 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 Canterbury Park i.e., Canterbury Park and International Game go up and down completely randomly.
Pair Corralation between Canterbury Park and International Game
Given the investment horizon of 90 days Canterbury Park Holding is expected to generate 1.52 times more return on investment than International Game. However, Canterbury Park is 1.52 times more volatile than International Game Technology. It trades about 0.05 of its potential returns per unit of risk. International Game Technology is currently generating about 0.06 per unit of risk. If you would invest 2,042 in Canterbury Park Holding on November 18, 2024 and sell it today you would earn a total of 38.00 from holding Canterbury Park Holding or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canterbury Park Holding vs. International Game Technology
Performance |
| Timeline |
| Canterbury Park Holding |
| International Game |
Canterbury Park and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canterbury Park and International Game
The main advantage of trading using opposite Canterbury Park and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canterbury Park 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.| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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