Correlation Between International Game and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both International Game and Wynn Resorts 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 Wynn Resorts 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 Wynn Resorts Limited, you can compare the effects of market volatilities on International Game and Wynn Resorts 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 Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Wynn Resorts.
Diversification Opportunities for International Game and Wynn Resorts
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Wynn is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited 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 Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of International Game i.e., International Game and Wynn Resorts go up and down completely randomly.
Pair Corralation between International Game and Wynn Resorts
Considering the 90-day investment horizon International Game Technology is expected to under-perform the Wynn Resorts. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.7 times less risky than Wynn Resorts. The stock trades about -0.14 of its potential returns per unit of risk. The Wynn Resorts Limited is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 9,742 in Wynn Resorts Limited on August 24, 2024 and sell it today you would lose (508.00) from holding Wynn Resorts Limited or give up 5.21% 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. Wynn Resorts Limited
Performance |
| Timeline |
| International Game |
| Wynn Resorts Limited |
International Game and Wynn Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Wynn Resorts
The main advantage of trading using opposite International Game and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Wynn Resorts 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 Wynn Resorts will offset losses from the drop in Wynn Resorts' long position.| International Game vs. Light Wonder | International Game vs. Inspired Entertainment | International Game vs. PlayAGS | International Game vs. Churchill Downs Incorporated |
| Wynn Resorts vs. MGM Resorts International | Wynn Resorts vs. Caesars Entertainment | Wynn Resorts vs. Melco Resorts Entertainment | Wynn Resorts vs. Penn National Gaming |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |