Correlation Between Neogames and International Game
Can any of the company-specific risk be diversified away by investing in both Neogames and International Game 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 Neogames and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogames SA and International Game Technology, you can compare the effects of market volatilities on Neogames and International Game 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 Neogames with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogames and International Game.
Diversification Opportunities for Neogames and International Game
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neogames and International is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Neogames SA and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Neogames 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 Neogames SA are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Neogames i.e., Neogames and International Game go up and down completely randomly.
Pair Corralation between Neogames and International Game
If you would invest 2,709 in Neogames SA on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Neogames SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Neogames SA vs. International Game Technology
Performance |
| Timeline |
| Neogames SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Game |
Neogames and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogames and International Game
The main advantage of trading using opposite Neogames and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogames position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Neogames vs. Accel Entertainment | Neogames vs. PlayAGS | Neogames vs. International Game Technology | Neogames vs. Everi Holdings |
| International Game vs. Accel Entertainment | International Game vs. Light Wonder | International Game vs. Inspired Entertainment | International Game vs. PlayAGS |
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.
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