Correlation Between TROPHY GAMES and H FARM
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and H FARM 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 TROPHY GAMES and H FARM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and H FARM SPA, you can compare the effects of market volatilities on TROPHY GAMES and H FARM 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 TROPHY GAMES with a short position of H FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and H FARM.
Diversification Opportunities for TROPHY GAMES and H FARM
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TROPHY and 5JQ is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA and TROPHY 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 TROPHY GAMES DEV are associated (or correlated) with H FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and H FARM go up and down completely randomly.
Pair Corralation between TROPHY GAMES and H FARM
Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 0.56 times more return on investment than H FARM. However, TROPHY GAMES DEV is 1.8 times less risky than H FARM. It trades about -0.08 of its potential returns per unit of risk. H FARM SPA is currently generating about -0.05 per unit of risk. If you would invest 98.00 in TROPHY GAMES DEV on August 25, 2024 and sell it today you would lose (5.00) from holding TROPHY GAMES DEV or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. H FARM SPA
Performance |
| Timeline |
| TROPHY GAMES DEV |
| H FARM SPA |
TROPHY GAMES and H FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and H FARM
The main advantage of trading using opposite TROPHY GAMES and H FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, H FARM 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 H FARM will offset losses from the drop in H FARM's long position.| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Bilibili |
| H FARM vs. The Bank of | H FARM vs. Ares Management Corp | H FARM vs. Superior Plus Corp | H FARM vs. NMI Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |