Correlation Between Take Two and Spire Healthcare
Can any of the company-specific risk be diversified away by investing in both Take Two and Spire Healthcare 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 Spire Healthcare 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 Spire Healthcare Group, you can compare the effects of market volatilities on Take Two and Spire Healthcare 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 Spire Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Spire Healthcare.
Diversification Opportunities for Take Two and Spire Healthcare
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Take and Spire is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Spire Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Healthcare 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 Spire Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Healthcare has no effect on the direction of Take Two i.e., Take Two and Spire Healthcare go up and down completely randomly.
Pair Corralation between Take Two and Spire Healthcare
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 0.97 times more return on investment than Spire Healthcare. However, Take Two Interactive Software is 1.03 times less risky than Spire Healthcare. It trades about 0.25 of its potential returns per unit of risk. Spire Healthcare Group is currently generating about 0.06 per unit of risk. If you would invest 17,862 in Take Two Interactive Software on September 12, 2024 and sell it today you would earn a total of 1,166 from holding Take Two Interactive Software or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Spire Healthcare Group
Performance |
| Timeline |
| Take Two Interactive |
| Spire Healthcare |
Take Two and Spire Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Spire Healthcare
The main advantage of trading using opposite Take Two and Spire Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Spire Healthcare 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 Spire Healthcare will offset losses from the drop in Spire Healthcare's long position.| Take Two vs. Hong Kong Land | Take Two vs. Neometals | Take Two vs. Coor Service Management | Take Two vs. Fidelity Sustainable USD |
| Spire Healthcare vs. Mulberry Group PLC | Spire Healthcare vs. Ikigai Ventures | Spire Healthcare vs. Neometals | Spire Healthcare vs. Coor Service Management |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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