Correlation Between Smart Share and International Game
Can any of the company-specific risk be diversified away by investing in both Smart Share 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 Smart Share and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and International Game Technology, you can compare the effects of market volatilities on Smart Share 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 Smart Share with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and International Game.
Diversification Opportunities for Smart Share and International Game
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Smart and International is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Smart Share 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 Smart Share Global 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 Smart Share i.e., Smart Share and International Game go up and down completely randomly.
Pair Corralation between Smart Share and International Game
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 3.76 times more return on investment than International Game. However, Smart Share is 3.76 times more volatile than International Game Technology. It trades about 0.16 of its potential returns per unit of risk. International Game Technology is currently generating about -0.14 per unit of risk. If you would invest 72.00 in Smart Share Global on December 2, 2024 and sell it today you would earn a total of 41.00 from holding Smart Share Global or generate 56.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Smart Share Global vs. International Game Technology
Performance |
Timeline |
Smart Share Global |
International Game |
Smart Share and International Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Smart Share and International Game
The main advantage of trading using opposite Smart Share and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share 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.Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash, | Smart Share vs. Carriage Services |
International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |