Correlation Between Take Two and Systemair
Can any of the company-specific risk be diversified away by investing in both Take Two and Systemair 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 Take Two and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and Systemair AB, you can compare the effects of market volatilities on Take Two and Systemair 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 Take Two with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Systemair.
Diversification Opportunities for Take Two and Systemair
Very weak diversification
The 3 months correlation between Take and Systemair is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Take Two 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 Take Two Interactive Software are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Take Two i.e., Take Two and Systemair go up and down completely randomly.
Pair Corralation between Take Two and Systemair
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 0.58 times more return on investment than Systemair. However, Take Two Interactive Software is 1.72 times less risky than Systemair. It trades about 0.1 of its potential returns per unit of risk. Systemair AB is currently generating about -0.06 per unit of risk. If you would invest 18,462 in Take Two Interactive Software on November 1, 2024 and sell it today you would earn a total of 597.00 from holding Take Two Interactive Software or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Systemair AB
Performance |
| Timeline |
| Take Two Interactive |
| Systemair AB |
Take Two and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Systemair
The main advantage of trading using opposite Take Two and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Take Two vs. Monks Investment Trust | Take Two vs. Mobius Investment Trust | Take Two vs. Kinnevik Investment AB | Take Two vs. EJF Investments |
| Systemair vs. Dalata Hotel Group | Systemair vs. Symphony Environmental Technologies | Systemair vs. Playtech Plc | Systemair vs. Take Two Interactive Software |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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