Correlation Between Uniper SE and Take Two
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Take Two 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 Uniper SE and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Take Two Interactive Software, you can compare the effects of market volatilities on Uniper SE and Take Two 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 Uniper SE with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Take Two.
Diversification Opportunities for Uniper SE and Take Two
Pay attention - limited upside
The 3 months correlation between Uniper and Take is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and Uniper SE 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 Uniper SE are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Uniper SE i.e., Uniper SE and Take Two go up and down completely randomly.
Pair Corralation between Uniper SE and Take Two
Assuming the 90 days trading horizon Uniper SE is expected to generate 1.33 times more return on investment than Take Two. However, Uniper SE is 1.33 times more volatile than Take Two Interactive Software. It trades about 0.04 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about -0.15 per unit of risk. If you would invest 4,163 in Uniper SE on October 12, 2024 and sell it today you would earn a total of 51.00 from holding Uniper SE or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Uniper SE vs. Take Two Interactive Software
Performance |
| Timeline |
| Uniper SE |
| Take Two Interactive |
Uniper SE and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Take Two
The main advantage of trading using opposite Uniper SE and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| Uniper SE vs. Accesso Technology Group | Uniper SE vs. Invesco Physical Silver | Uniper SE vs. Sabien Technology Group | Uniper SE vs. Coeur Mining |
| Take Two vs. Batm Advanced Communications | Take Two vs. Qurate Retail Series | Take Two vs. Griffin Mining | Take Two vs. Aeorema Communications 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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