Correlation Between 500 and International Game
Can any of the company-specific risk be diversified away by investing in both 500 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 500 and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 500 and International Game Technology, you can compare the effects of market volatilities on 500 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 500 with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of 500 and International Game.
Diversification Opportunities for 500 and International Game
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 500 and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 500 and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and 500 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 500 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 500 i.e., 500 and International Game go up and down completely randomly.
Pair Corralation between 500 and International Game
If you would invest (100.00) in 500 on January 24, 2024 and sell it today you would earn a total of 100.00 from holding 500 or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
500 vs. International Game Technology
Performance |
| Timeline |
| 500 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Game |
500 and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 500 and International Game
The main advantage of trading using opposite 500 and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 500 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.| 500 vs. Vishay Intertechnology | 500 vs. United Microelectronics | 500 vs. IPG Photonics | 500 vs. HF Sinclair Corp |
| International Game vs. NeogamesSA | International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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