Correlation Between MOVIE GAMES and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and SWISS WATER 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 MOVIE GAMES and SWISS WATER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on MOVIE GAMES and SWISS WATER 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 MOVIE GAMES with a short position of SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and SWISS WATER.
Diversification Opportunities for MOVIE GAMES and SWISS WATER
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOVIE and SWISS is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and SWISS WATER go up and down completely randomly.
Pair Corralation between MOVIE GAMES and SWISS WATER
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 2.15 times more return on investment than SWISS WATER. However, MOVIE GAMES is 2.15 times more volatile than SWISS WATER DECAFFCOFFEE. It trades about 0.24 of its potential returns per unit of risk. SWISS WATER DECAFFCOFFEE is currently generating about -0.03 per unit of risk. If you would invest 297.00 in MOVIE GAMES SA on October 22, 2024 and sell it today you would earn a total of 78.00 from holding MOVIE GAMES SA or generate 26.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
MOVIE GAMES SA vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| MOVIE GAMES SA |
| SWISS WATER DECAFFCOFFEE |
MOVIE GAMES and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and SWISS WATER
The main advantage of trading using opposite MOVIE GAMES and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| MOVIE GAMES vs. bet at home AG | MOVIE GAMES vs. Sekisui Chemical Co | MOVIE GAMES vs. Mitsui Chemicals | MOVIE GAMES vs. SILICON LABORATOR |
| SWISS WATER vs. MOVIE GAMES SA | SWISS WATER vs. Zoom Video Communications | SWISS WATER vs. IMPERIAL TOBACCO | SWISS WATER vs. USWE SPORTS AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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