Correlation Between International Game and TH International
Can any of the company-specific risk be diversified away by investing in both International Game and TH International 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 TH International 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 TH International Limited, you can compare the effects of market volatilities on International Game and TH International 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 TH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and TH International.
Diversification Opportunities for International Game and TH International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and THCH is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and TH International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TH International 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 TH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TH International has no effect on the direction of International Game i.e., International Game and TH International go up and down completely randomly.
Pair Corralation between International Game and TH International
Considering the 90-day investment horizon International Game is expected to generate 17.89 times less return on investment than TH International. But when comparing it to its historical volatility, International Game Technology is 2.37 times less risky than TH International. It trades about 0.0 of its potential returns per unit of risk. TH International Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 89.00 in TH International Limited on September 3, 2024 and sell it today you would lose (1.00) from holding TH International Limited or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. TH International Limited
Performance |
| Timeline |
| International Game |
| TH International |
International Game and TH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and TH International
The main advantage of trading using opposite International Game and TH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, TH International 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 TH International will offset losses from the drop in TH International's long position.| International Game vs. PlayAGS | International Game vs. Canterbury Park Holding | International Game vs. Light Wonder | International Game vs. Everi Holdings |
| TH International vs. Highway Holdings Limited | TH International vs. QCR Holdings | TH International vs. Partner Communications | TH International vs. Acumen Pharmaceuticals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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