Correlation Between Take Two and Jupiter Green
Can any of the company-specific risk be diversified away by investing in both Take Two and Jupiter Green 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 Jupiter Green 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 Jupiter Green Investment, you can compare the effects of market volatilities on Take Two and Jupiter Green 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 Jupiter Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Jupiter Green.
Diversification Opportunities for Take Two and Jupiter Green
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Take and Jupiter is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Jupiter Green Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Green 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 Jupiter Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Green Investment has no effect on the direction of Take Two i.e., Take Two and Jupiter Green go up and down completely randomly.
Pair Corralation between Take Two and Jupiter Green
Assuming the 90 days trading horizon Take Two is expected to generate 1.76 times less return on investment than Jupiter Green. In addition to that, Take Two is 2.92 times more volatile than Jupiter Green Investment. It trades about 0.09 of its total potential returns per unit of risk. Jupiter Green Investment is currently generating about 0.45 per unit of volatility. If you would invest 23,400 in Jupiter Green Investment on October 24, 2024 and sell it today you would earn a total of 1,000.00 from holding Jupiter Green Investment or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Jupiter Green Investment
Performance |
| Timeline |
| Take Two Interactive |
| Jupiter Green Investment |
Take Two and Jupiter Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Jupiter Green
The main advantage of trading using opposite Take Two and Jupiter Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Jupiter Green 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 Jupiter Green will offset losses from the drop in Jupiter Green's long position.| Take Two vs. Alien Metals | Take Two vs. Global Net Lease | Take Two vs. CAP LEASE AVIATION | Take Two vs. Central Asia Metals |
| Jupiter Green vs. Infineon Technologies AG | Jupiter Green vs. Xeros Technology Group | Jupiter Green vs. BW Offshore | Jupiter Green 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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