Correlation Between Sensus Healthcare and International Game

Can any of the company-specific risk be diversified away by investing in both Sensus Healthcare 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 Sensus Healthcare and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sensus Healthcare and International Game Technology, you can compare the effects of market volatilities on Sensus Healthcare 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 Sensus Healthcare with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensus Healthcare and International Game.

Diversification Opportunities for Sensus Healthcare and International Game

0.21

Correlation Coefficient

Sensus Healthcare  International Game

Modest diversification

The 3 months correlation between Sensus and International is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sensus Healthcare and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Sensus Healthcare 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 Sensus Healthcare 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 Sensus Healthcare i.e., Sensus Healthcare and International Game go up and down completely randomly.

Pair Corralation between Sensus Healthcare and International Game

Given the investment horizon of 90 days Sensus Healthcare is expected to generate 1.53 times more return on investment than International Game. However, Sensus Healthcare is 1.53 times more volatile than International Game Technology. It trades about 0.14 of its potential returns per unit of risk. International Game Technology is currently generating about 0.1 per unit of risk. If you would invest  424.00  in Sensus Healthcare on May 6, 2025 and sell it today you would earn a total of  134.00  from holding Sensus Healthcare or generate 31.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	75.81%
Values	Daily Returns

Sensus Healthcare  vs.  International Game Technology

Sensus Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sensus Healthcare are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Sensus Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.

International Game

Risk-Adjusted Performance

OK

Over the last 90 days International Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively conflicting technical and fundamental indicators, International Game unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sensus Healthcare and International Game

The main advantage of trading using opposite Sensus Healthcare and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensus Healthcare 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.

The idea behind Sensus Healthcare and International Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.