Correlation Between Perusahaan Perseroan and International Game

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

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

Diversification Opportunities for Perusahaan Perseroan and International Game

0.54

Correlation Coefficient

Perusahaan Perseroan  International Game

Very weak diversification

The 3 months correlation between Perusahaan and International is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Perusahaan Perseroan 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 Perusahaan Perseroan PT 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 Perusahaan Perseroan i.e., Perusahaan Perseroan and International Game go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and International Game

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the International Game. In addition to that, Perusahaan Perseroan is 1.17 times more volatile than International Game Technology. It trades about -0.09 of its total potential returns per unit of risk. International Game Technology is currently generating about -0.04 per unit of volatility. If you would invest  1,820  in International Game Technology on December 1, 2024 and sell it today you would lose (100.00) from holding International Game Technology or give up 5.49% of portfolio value over 90 days.

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

Perusahaan Perseroan PT  vs.  International Game Technology

Perusahaan Perseroan

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perusahaan Perseroan PT 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.

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Perusahaan Perseroan and International Game

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

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..