Correlation Between STANDARD CHARTUNSPADR2 and International Game
Can any of the company-specific risk be diversified away by investing in both STANDARD CHARTUNSPADR2 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 STANDARD CHARTUNSPADR2 and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STANDARD CHARTUNSPADR2 and International Game Technology, you can compare the effects of market volatilities on STANDARD CHARTUNSPADR2 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 STANDARD CHARTUNSPADR2 with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD CHARTUNSPADR2 and International Game.
Diversification Opportunities for STANDARD CHARTUNSPADR2 and International Game
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STANDARD and International is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD CHARTUNSPADR2 and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and STANDARD CHARTUNSPADR2 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 STANDARD CHARTUNSPADR2 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 STANDARD CHARTUNSPADR2 i.e., STANDARD CHARTUNSPADR2 and International Game go up and down completely randomly.
Pair Corralation between STANDARD CHARTUNSPADR2 and International Game
Assuming the 90 days trading horizon STANDARD CHARTUNSPADR2 is expected to generate 0.86 times more return on investment than International Game. However, STANDARD CHARTUNSPADR2 is 1.17 times less risky than International Game. It trades about 0.15 of its potential returns per unit of risk. International Game Technology is currently generating about 0.01 per unit of risk. If you would invest 1,601 in STANDARD CHARTUNSPADR2 on September 14, 2024 and sell it today you would earn a total of 679.00 from holding STANDARD CHARTUNSPADR2 or generate 42.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD CHARTUNSPADR2 vs. International Game Technology
Performance |
| Timeline |
| STANDARD CHARTUNSPADR2 |
| International Game |
STANDARD CHARTUNSPADR2 and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD CHARTUNSPADR2 and International Game
The main advantage of trading using opposite STANDARD CHARTUNSPADR2 and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD CHARTUNSPADR2 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.| STANDARD CHARTUNSPADR2 vs. International Game Technology | STANDARD CHARTUNSPADR2 vs. Penn National Gaming | STANDARD CHARTUNSPADR2 vs. ECHO INVESTMENT ZY | STANDARD CHARTUNSPADR2 vs. QINGCI GAMES INC |
| International Game vs. Scientific Games | International Game vs. Superior Plus Corp | International Game vs. SIVERS SEMICONDUCTORS AB | International Game vs. NorAm Drilling AS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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