Correlation Between Take Two and Hansa Investment
Can any of the company-specific risk be diversified away by investing in both Take Two and Hansa Investment 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 Hansa Investment 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 Hansa Investment, you can compare the effects of market volatilities on Take Two and Hansa Investment 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 Hansa Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Hansa Investment.
Diversification Opportunities for Take Two and Hansa Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Take and Hansa is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Hansa Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Investment 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 Hansa Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Investment has no effect on the direction of Take Two i.e., Take Two and Hansa Investment go up and down completely randomly.
Pair Corralation between Take Two and Hansa Investment
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 1.04 times more return on investment than Hansa Investment. However, Take Two is 1.04 times more volatile than Hansa Investment. It trades about 0.12 of its potential returns per unit of risk. Hansa Investment is currently generating about 0.04 per unit of risk. If you would invest 14,755 in Take Two Interactive Software on September 3, 2024 and sell it today you would earn a total of 4,006 from holding Take Two Interactive Software or generate 27.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.67% |
| Values | Daily Returns |
Take Two Interactive Software vs. Hansa Investment
Performance |
| Timeline |
| Take Two Interactive |
| Hansa Investment |
Take Two and Hansa Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Hansa Investment
The main advantage of trading using opposite Take Two and Hansa Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Hansa Investment 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 Hansa Investment will offset losses from the drop in Hansa Investment's long position.| Take Two vs. Hansa Investment | Take Two vs. Verizon Communications | Take Two vs. Zoom Video Communications | Take Two vs. Orient Telecoms |
| Hansa Investment vs. Hansa Biopharma AB | Hansa Investment vs. Hansa Trust | Hansa Investment vs. Eastman Chemical Co | Hansa Investment vs. American Tower REIT |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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