Correlation Between Lottery, Warrants and International Game

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

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

Diversification Opportunities for Lottery, Warrants and International Game

0.56

Correlation Coefficient

Lottery, Warrants  International Game

Very weak diversification

The 3 months correlation between Lottery, and International is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lottery, Warrants and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Lottery, Warrants 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 Lottery, Warrants 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 Lottery, Warrants i.e., Lottery, Warrants and International Game go up and down completely randomly.

Pair Corralation between Lottery, Warrants and International Game

Assuming the 90 days horizon Lottery, Warrants is expected to generate 7.22 times more return on investment than International Game. However, Lottery, Warrants is 7.22 times more volatile than International Game Technology. It trades about 0.0 of its potential returns per unit of risk. International Game Technology is currently generating about -0.18 per unit of risk. If you would invest  1.31  in Lottery, Warrants on September 25, 2024 and sell it today you would lose (0.43) from holding Lottery, Warrants or give up 32.82% of portfolio value over 90 days.

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

Lottery, Warrants  vs.  International Game Technology

Lottery, Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lottery, Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lottery, Warrants is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated 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. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Lottery, Warrants and International Game

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

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.