Correlation Between International and 00108WAF7
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By analyzing existing cross correlation between International Game Technology and AEP TEX INC, you can compare the effects of market volatilities on International and 00108WAF7 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 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of International and 00108WAF7.
Diversification Opportunities for International and 00108WAF7
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between International and 00108WAF7 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and International 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of International i.e., International and 00108WAF7 go up and down completely randomly.
Pair Corralation between International and 00108WAF7
Assuming the 90 days trading horizon International is expected to generate 4.16 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, International Game Technology is 2.03 times less risky than 00108WAF7. It trades about 0.06 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7,888 in AEP TEX INC on August 31, 2024 and sell it today you would lose (799.00) from holding AEP TEX INC or give up 10.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.14% |
| Values | Daily Returns |
International Game Technology vs. AEP TEX INC
Performance |
| Timeline |
| International Game |
| AEP TEX INC |
International and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International and 00108WAF7
The main advantage of trading using opposite International and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| International vs. AEP TEX INC | International vs. US BANK NATIONAL | International vs. Bank of America | International vs. GE Aerospace |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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