Correlation Between CGN MINING and International Game

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

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

Diversification Opportunities for CGN MINING and International Game

0.0

Correlation Coefficient

CGN MINING  International Game

Pay attention - limited upside

The 3 months correlation between CGN and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CGN MINING and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and CGN MINING 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 CGN MINING 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 CGN MINING i.e., CGN MINING and International Game go up and down completely randomly.

Pair Corralation between CGN MINING and International Game

If you would invest (100.00) in CGN MINING on October 25, 2024 and sell it today you would earn a total of  100.00  from holding CGN MINING or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CGN MINING  vs.  International Game Technology

CGN MINING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CGN MINING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CGN MINING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with CGN MINING and International Game

The main advantage of trading using opposite CGN MINING and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN MINING 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 CGN MINING 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.