Correlation Between Take Two and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Take Two and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Take Two and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Sligro Food.
Diversification Opportunities for Take Two and Sligro Food
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Take and Sligro is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Take Two i.e., Take Two and Sligro Food go up and down completely randomly.
Pair Corralation between Take Two and Sligro Food
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 1.14 times more return on investment than Sligro Food. However, Take Two is 1.14 times more volatile than Sligro Food Group. It trades about 0.05 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.08 per unit of risk. If you would invest 16,499 in Take Two Interactive Software on August 29, 2024 and sell it today you would earn a total of 2,338 from holding Take Two Interactive Software or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.06% |
| Values | Daily Returns |
Take Two Interactive Software vs. Sligro Food Group
Performance |
| Timeline |
| Take Two Interactive |
| Sligro Food Group |
Take Two and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Sligro Food
The main advantage of trading using opposite Take Two and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Take Two vs. Lendinvest PLC | Take Two vs. Neometals | Take Two vs. Coor Service Management | Take Two vs. Albion Technology General |
| Sligro Food vs. Lendinvest PLC | Sligro Food vs. Neometals | Sligro Food vs. Coor Service Management | Sligro Food vs. Albion Technology General |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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