Correlation Between International Game and Galaxy Gaming
Can any of the company-specific risk be diversified away by investing in both International Game and Galaxy Gaming 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 Galaxy Gaming 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 Galaxy Gaming, you can compare the effects of market volatilities on International Game and Galaxy Gaming 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 Galaxy Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Galaxy Gaming.
Diversification Opportunities for International Game and Galaxy Gaming
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Galaxy is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Galaxy Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Gaming 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 Galaxy Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Gaming has no effect on the direction of International Game i.e., International Game and Galaxy Gaming go up and down completely randomly.
Pair Corralation between International Game and Galaxy Gaming
Considering the 90-day investment horizon International Game Technology is expected to under-perform the Galaxy Gaming. In addition to that, International Game is 1.34 times more volatile than Galaxy Gaming. It trades about -0.23 of its total potential returns per unit of risk. Galaxy Gaming is currently generating about 0.07 per unit of volatility. If you would invest 269.00 in Galaxy Gaming on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Galaxy Gaming or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Galaxy Gaming
Performance |
| Timeline |
| International Game |
| Galaxy Gaming |
International Game and Galaxy Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Galaxy Gaming
The main advantage of trading using opposite International Game and Galaxy Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Galaxy Gaming 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 Galaxy Gaming will offset losses from the drop in Galaxy Gaming's long position.| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
| Galaxy Gaming vs. Intema Solutions | Galaxy Gaming vs. 888 Holdings | Galaxy Gaming vs. Royal Wins | Galaxy Gaming vs. Real Luck Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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