Correlation Between International Game and ITV -

Can any of the company-specific risk be diversified away by investing in both International Game and ITV - 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 ITV - 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 ITV Dusseldorf, you can compare the effects of market volatilities on International Game and ITV - 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 ITV -. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and ITV -.

Diversification Opportunities for International Game and ITV -

-0.21

Correlation Coefficient

International Game  ITV -

Very good diversification

The 3 months correlation between International and ITV is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and ITV Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV Dusseldorf 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 ITV -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV Dusseldorf has no effect on the direction of International Game i.e., International Game and ITV - go up and down completely randomly.

Pair Corralation between International Game and ITV -

Assuming the 90 days horizon International Game Technology is expected to under-perform the ITV -. In addition to that, International Game is 1.02 times more volatile than ITV Dusseldorf. It trades about -0.05 of its total potential returns per unit of risk. ITV Dusseldorf is currently generating about 0.11 per unit of volatility. If you would invest  86.00  in ITV Dusseldorf on December 23, 2024 and sell it today you would earn a total of  10.00  from holding ITV Dusseldorf or generate 11.63% return on investment over 90 days.

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

International Game Technology  vs.  ITV Dusseldorf

International Game

Risk-Adjusted Performance

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 nearly stable basic indicators, International Game is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

ITV Dusseldorf

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ITV Dusseldorf are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, ITV - may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with International Game and ITV -

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

The idea behind International Game Technology and ITV Dusseldorf 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.