Correlation Between Take Two and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both Take Two and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining Corp, you can compare the effects of market volatilities on Take Two and Endeavour Mining 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 Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Endeavour Mining.
Diversification Opportunities for Take Two and Endeavour Mining
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Take and Endeavour is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of Take Two i.e., Take Two and Endeavour Mining go up and down completely randomly.
Pair Corralation between Take Two and Endeavour Mining
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 0.57 times more return on investment than Endeavour Mining. However, Take Two Interactive Software is 1.74 times less risky than Endeavour Mining. It trades about 0.23 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about -0.01 per unit of risk. If you would invest 15,469 in Take Two Interactive Software on September 12, 2024 and sell it today you would earn a total of 3,559 from holding Take Two Interactive Software or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Endeavour Mining Corp
Performance |
| Timeline |
| Take Two Interactive |
| Endeavour Mining Corp |
Take Two and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Endeavour Mining
The main advantage of trading using opposite Take Two and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Endeavour Mining 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.| Take Two vs. Aurora Investment Trust | Take Two vs. Bankers Investment Trust | Take Two vs. FC Investment Trust | Take Two vs. Intuitive Investments Group |
| Endeavour Mining vs. McEwen Mining | Endeavour Mining vs. Applied Materials | Endeavour Mining vs. Wheaton Precious Metals | Endeavour Mining vs. Bisichi Mining PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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