Correlation Between TEN SQUARE and Alfen NV
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Alfen NV 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 TEN SQUARE and Alfen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Alfen NV, you can compare the effects of market volatilities on TEN SQUARE and Alfen NV 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 TEN SQUARE with a short position of Alfen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Alfen NV.
Diversification Opportunities for TEN SQUARE and Alfen NV
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TEN and Alfen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Alfen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfen NV and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Alfen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfen NV has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Alfen NV go up and down completely randomly.
Pair Corralation between TEN SQUARE and Alfen NV
Assuming the 90 days horizon TEN SQUARE GAMES is expected to generate 0.8 times more return on investment than Alfen NV. However, TEN SQUARE GAMES is 1.26 times less risky than Alfen NV. It trades about 0.02 of its potential returns per unit of risk. Alfen NV is currently generating about -0.06 per unit of risk. If you would invest 1,732 in TEN SQUARE GAMES on November 1, 2024 and sell it today you would earn a total of 46.00 from holding TEN SQUARE GAMES or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Alfen NV
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Alfen NV |
TEN SQUARE and Alfen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Alfen NV
The main advantage of trading using opposite TEN SQUARE and Alfen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Alfen NV 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 Alfen NV will offset losses from the drop in Alfen NV's long position.| TEN SQUARE vs. NEXON Co | TEN SQUARE vs. NEXON Co | TEN SQUARE vs. Take Two Interactive Software | TEN SQUARE vs. Aristocrat Leisure Limited |
| Alfen NV vs. BE Semiconductor Industries | Alfen NV vs. Sunny Optical Technology | Alfen NV vs. Nordic Semiconductor ASA | Alfen NV vs. AECOM TECHNOLOGY |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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