Correlation Between Thyssenkrupp and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Thyssenkrupp and Guild Esports 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 Thyssenkrupp and Guild Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thyssenkrupp AG ON and Guild Esports Plc, you can compare the effects of market volatilities on Thyssenkrupp and Guild Esports 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 Thyssenkrupp with a short position of Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thyssenkrupp and Guild Esports.
Diversification Opportunities for Thyssenkrupp and Guild Esports
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thyssenkrupp and Guild is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thyssenkrupp AG ON and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc and Thyssenkrupp 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 Thyssenkrupp AG ON are associated (or correlated) with Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Thyssenkrupp i.e., Thyssenkrupp and Guild Esports go up and down completely randomly.
Pair Corralation between Thyssenkrupp and Guild Esports
Assuming the 90 days trading horizon Thyssenkrupp AG ON is expected to generate 0.29 times more return on investment than Guild Esports. However, Thyssenkrupp AG ON is 3.42 times less risky than Guild Esports. It trades about 0.02 of its potential returns per unit of risk. Guild Esports Plc is currently generating about -0.02 per unit of risk. If you would invest 641.00 in Thyssenkrupp AG ON on November 28, 2024 and sell it today you would earn a total of 55.00 from holding Thyssenkrupp AG ON or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thyssenkrupp AG ON vs. Guild Esports Plc
Performance |
| Timeline |
| Thyssenkrupp AG ON |
| Guild Esports Plc |
Thyssenkrupp and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thyssenkrupp and Guild Esports
The main advantage of trading using opposite Thyssenkrupp and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thyssenkrupp position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| Thyssenkrupp vs. Home Depot | Thyssenkrupp vs. Clean Power Hydrogen | Thyssenkrupp vs. Empire Metals Limited | Thyssenkrupp vs. Monster Beverage Corp |
| Guild Esports vs. Smithson Investment Trust | Guild Esports vs. Aurora Investment Trust | Guild Esports vs. Schroders Investment Trusts | Guild Esports vs. Compal Electronics GDR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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