Correlation Between TEN SQUARE and KOWORLD AG
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and KOWORLD AG 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 KOWORLD AG 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 KOWORLD AG, you can compare the effects of market volatilities on TEN SQUARE and KOWORLD AG 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 KOWORLD AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and KOWORLD AG.
Diversification Opportunities for TEN SQUARE and KOWORLD AG
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TEN and KOWORLD is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and KOWORLD AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOWORLD AG 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 KOWORLD AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOWORLD AG has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and KOWORLD AG go up and down completely randomly.
Pair Corralation between TEN SQUARE and KOWORLD AG
Assuming the 90 days horizon TEN SQUARE GAMES is expected to generate 1.17 times more return on investment than KOWORLD AG. However, TEN SQUARE is 1.17 times more volatile than KOWORLD AG. It trades about 0.12 of its potential returns per unit of risk. KOWORLD AG is currently generating about -0.04 per unit of risk. If you would invest 1,739 in TEN SQUARE GAMES on November 5, 2024 and sell it today you would earn a total of 67.00 from holding TEN SQUARE GAMES or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. KOWORLD AG
Performance |
| Timeline |
| TEN SQUARE GAMES |
| KOWORLD AG |
TEN SQUARE and KOWORLD AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and KOWORLD AG
The main advantage of trading using opposite TEN SQUARE and KOWORLD AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, KOWORLD AG 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 KOWORLD AG will offset losses from the drop in KOWORLD AG's long position.| TEN SQUARE vs. Compugroup Medical SE | TEN SQUARE vs. Genertec Universal Medical | TEN SQUARE vs. Merit Medical Systems | TEN SQUARE vs. Take Two Interactive Software |
| KOWORLD AG vs. TRADELINK ELECTRON | KOWORLD AG vs. National Retail Properties | KOWORLD AG vs. TRADEDOUBLER AB SK | KOWORLD AG vs. Fast Retailing Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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