Correlation Between International Game and Chijet
Can any of the company-specific risk be diversified away by investing in both International Game and Chijet 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 Chijet 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 Chijet Motor Company,, you can compare the effects of market volatilities on International Game and Chijet 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 Chijet. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Chijet.
Diversification Opportunities for International Game and Chijet
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and Chijet is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Chijet Motor Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chijet Motor , 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 Chijet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chijet Motor , has no effect on the direction of International Game i.e., International Game and Chijet go up and down completely randomly.
Pair Corralation between International Game and Chijet
Considering the 90-day investment horizon International Game Technology is expected to generate 0.22 times more return on investment than Chijet. However, International Game Technology is 4.62 times less risky than Chijet. It trades about 0.0 of its potential returns per unit of risk. Chijet Motor Company, is currently generating about -0.05 per unit of risk. If you would invest 2,221 in International Game Technology on August 31, 2024 and sell it today you would lose (298.00) from holding International Game Technology or give up 13.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Chijet Motor Company,
Performance |
| Timeline |
| International Game |
| Chijet Motor , |
International Game and Chijet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Chijet
The main advantage of trading using opposite International Game and Chijet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Chijet 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 Chijet will offset losses from the drop in Chijet's long position.| International Game vs. Light Wonder | International Game vs. Everi Holdings | International Game vs. Inspired Entertainment | International Game vs. PlayAGS |
| Chijet vs. Playstudios | Chijet vs. Nike Inc | Chijet vs. Playtika Holding Corp | Chijet vs. FitLife Brands, Common |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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