Correlation Between Wynn Resorts and International Game

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

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

Diversification Opportunities for Wynn Resorts and International Game

-0.18

Correlation Coefficient

Wynn Resorts  International Game

Good diversification

The 3 months correlation between Wynn and International is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Wynn Resorts 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 Wynn Resorts Limited 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 Wynn Resorts i.e., Wynn Resorts and International Game go up and down completely randomly.

Pair Corralation between Wynn Resorts and International Game

Given the investment horizon of 90 days Wynn Resorts Limited is expected to generate 0.91 times more return on investment than International Game. However, Wynn Resorts Limited is 1.1 times less risky than International Game. It trades about 0.19 of its potential returns per unit of risk. International Game Technology is currently generating about 0.08 per unit of risk. If you would invest  8,390  in Wynn Resorts Limited on May 7, 2025 and sell it today you would earn a total of  2,315  from holding Wynn Resorts Limited or generate 27.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	74.19%
Values	Daily Returns

Wynn Resorts Limited  vs.  International Game Technology

Wynn Resorts Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wynn Resorts Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Wynn Resorts displayed solid returns over the last few months and may actually be approaching a breakup point.

International Game

Risk-Adjusted Performance

Mild

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 Wynn Resorts and International Game

The main advantage of trading using opposite Wynn Resorts and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wynn Resorts 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 Wynn Resorts Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.