Correlation Between Urban Outfitters and International Game
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters 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 Urban Outfitters and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and International Game Technology, you can compare the effects of market volatilities on Urban Outfitters 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 Urban Outfitters with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and International Game.
Diversification Opportunities for Urban Outfitters and International Game
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and International is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Urban Outfitters 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 Urban Outfitters 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 Urban Outfitters i.e., Urban Outfitters and International Game go up and down completely randomly.
Pair Corralation between Urban Outfitters and International Game
Assuming the 90 days horizon Urban Outfitters is expected to generate 1.13 times more return on investment than International Game. However, Urban Outfitters is 1.13 times more volatile than International Game Technology. It trades about 0.08 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 2,454 in Urban Outfitters on October 13, 2024 and sell it today you would earn a total of 3,096 from holding Urban Outfitters or generate 126.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Outfitters vs. International Game Technology
Performance |
| Timeline |
| Urban Outfitters |
| International Game |
Urban Outfitters and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and International Game
The main advantage of trading using opposite Urban Outfitters and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters 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.| Urban Outfitters vs. HK Electric Investments | Urban Outfitters vs. Australian Agricultural | Urban Outfitters vs. Treasury Wine Estates | Urban Outfitters vs. Sterling Construction |
| International Game vs. Urban Outfitters | International Game vs. CN MODERN DAIRY | International Game vs. Tyson Foods | International Game vs. Automatic Data Processing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |