Correlation Between International Game and ANGLER GAMING

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

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

Diversification Opportunities for International Game and ANGLER GAMING

0.56

Correlation Coefficient

International Game  ANGLER GAMING

Very weak diversification

The 3 months correlation between International and ANGLER is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and International Game 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 ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of International Game i.e., International Game and ANGLER GAMING go up and down completely randomly.

Pair Corralation between International Game and ANGLER GAMING

Assuming the 90 days horizon International Game Technology is expected to under-perform the ANGLER GAMING. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 2.11 times less risky than ANGLER GAMING. The stock trades about -0.06 of its potential returns per unit of risk. The ANGLER GAMING PLC is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  33.00  in ANGLER GAMING PLC on August 31, 2024 and sell it today you would lose (3.00) from holding ANGLER GAMING PLC or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

International Game Technology  vs.  ANGLER GAMING PLC

International Game

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ANGLER GAMING PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANGLER GAMING PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ANGLER GAMING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with International Game and ANGLER GAMING

The main advantage of trading using opposite International Game and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, ANGLER GAMING 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 ANGLER GAMING will offset losses from the drop in ANGLER GAMING's long position.

The idea behind International Game Technology and ANGLER GAMING PLC 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.