Correlation Between International Game and 888 Holdings
Can any of the company-specific risk be diversified away by investing in both International Game and 888 Holdings 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 888 Holdings 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 888 Holdings, you can compare the effects of market volatilities on International Game and 888 Holdings 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 888 Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and 888 Holdings.
Diversification Opportunities for International Game and 888 Holdings
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and 888 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and 888 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 888 Holdings 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 888 Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 888 Holdings has no effect on the direction of International Game i.e., International Game and 888 Holdings go up and down completely randomly.
Pair Corralation between International Game and 888 Holdings
Considering the 90-day investment horizon International Game Technology is expected to under-perform the 888 Holdings. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.21 times less risky than 888 Holdings. The stock trades about -0.23 of its potential returns per unit of risk. The 888 Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 73.00 in 888 Holdings on August 28, 2024 and sell it today you would earn a total of 7.00 from holding 888 Holdings or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Game Technology vs. 888 Holdings
Performance |
| Timeline |
| International Game |
| 888 Holdings |
International Game and 888 Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and 888 Holdings
The main advantage of trading using opposite International Game and 888 Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, 888 Holdings 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 888 Holdings will offset losses from the drop in 888 Holdings' long position.| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
| 888 Holdings vs. Entain Plc | 888 Holdings vs. PointsBet Holdings Limited | 888 Holdings vs. Kambi Group plc | 888 Holdings vs. Entain DRC PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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