Correlation Between AGRICULTBK HADR25 and International Game
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 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 AGRICULTBK HADR25 and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and International Game Technology, you can compare the effects of market volatilities on AGRICULTBK HADR25 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 AGRICULTBK HADR25 with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and International Game.
Diversification Opportunities for AGRICULTBK HADR25 and International Game
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICULTBK and International is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and International Game go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR25 and International Game
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.29 times more return on investment than International Game. However, AGRICULTBK HADR25 is 1.29 times more volatile than International Game Technology. It trades about 0.2 of its potential returns per unit of risk. International Game Technology is currently generating about -0.18 per unit of risk. If you would invest 1,191 in AGRICULTBK HADR25 YC on October 11, 2024 and sell it today you would earn a total of 109.00 from holding AGRICULTBK HADR25 YC or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. International Game Technology
Performance |
| Timeline |
| AGRICULTBK HADR25 |
| International Game |
AGRICULTBK HADR25 and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR25 and International Game
The main advantage of trading using opposite AGRICULTBK HADR25 and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 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.| AGRICULTBK HADR25 vs. Sunny Optical Technology | AGRICULTBK HADR25 vs. Casio Computer CoLtd | AGRICULTBK HADR25 vs. X FAB Silicon Foundries | AGRICULTBK HADR25 vs. SOFI TECHNOLOGIES |
| International Game vs. AGRICULTBK HADR25 YC | International Game vs. Australian Agricultural | International Game vs. YATRA ONLINE DL 0001 | International Game vs. NorAm Drilling AS |
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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