Correlation Between TROPHY GAMES and Marubeni
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on TROPHY GAMES and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and Marubeni.
Diversification Opportunities for TROPHY GAMES and Marubeni
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between TROPHY and Marubeni is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and Marubeni go up and down completely randomly.
Pair Corralation between TROPHY GAMES and Marubeni
Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 1.31 times more return on investment than Marubeni. However, TROPHY GAMES is 1.31 times more volatile than Marubeni. It trades about 0.02 of its potential returns per unit of risk. Marubeni is currently generating about -0.05 per unit of risk. If you would invest 91.00 in TROPHY GAMES DEV on September 3, 2024 and sell it today you would earn a total of 4.00 from holding TROPHY GAMES DEV or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. Marubeni
Performance |
| Timeline |
| TROPHY GAMES DEV |
| Marubeni |
TROPHY GAMES and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and Marubeni
The main advantage of trading using opposite TROPHY GAMES and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni's long position.| TROPHY GAMES vs. Nintendo Co | TROPHY GAMES vs. Nintendo Co | TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. Take Two Interactive Software |
| Marubeni vs. TITANIUM TRANSPORTGROUP | Marubeni vs. QUEEN S ROAD | Marubeni vs. Fukuyama Transporting Co | Marubeni vs. BII Railway Transportation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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