Correlation Between FAIR ISAAC and International Game
Can any of the company-specific risk be diversified away by investing in both FAIR ISAAC 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 FAIR ISAAC and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAIR ISAAC and International Game Technology, you can compare the effects of market volatilities on FAIR ISAAC 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 FAIR ISAAC with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAIR ISAAC and International Game.
Diversification Opportunities for FAIR ISAAC and International Game
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FAIR and International is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FAIR ISAAC and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and FAIR ISAAC 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 FAIR ISAAC 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 FAIR ISAAC i.e., FAIR ISAAC and International Game go up and down completely randomly.
Pair Corralation between FAIR ISAAC and International Game
Assuming the 90 days trading horizon FAIR ISAAC is expected to under-perform the International Game. In addition to that, FAIR ISAAC is 1.32 times more volatile than International Game Technology. It trades about -0.28 of its total potential returns per unit of risk. International Game Technology is currently generating about 0.01 per unit of volatility. If you would invest 1,610 in International Game Technology on October 30, 2024 and sell it today you would earn a total of 0.00 from holding International Game Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAIR ISAAC vs. International Game Technology
Performance |
| Timeline |
| FAIR ISAAC |
| International Game |
FAIR ISAAC and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAIR ISAAC and International Game
The main advantage of trading using opposite FAIR ISAAC and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAIR ISAAC 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.| FAIR ISAAC vs. Ribbon Communications | FAIR ISAAC vs. BORR DRILLING NEW | FAIR ISAAC vs. DXC Technology Co | FAIR ISAAC vs. Iridium Communications |
| International Game vs. Flutter Entertainment PLC | International Game vs. Churchill Downs Incorporated | International Game vs. La Franaise des | International Game vs. Scientific Games |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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