Correlation Between SIDETRADE and Tradegate
Can any of the company-specific risk be diversified away by investing in both SIDETRADE and Tradegate 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 SIDETRADE and Tradegate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIDETRADE EO 1 and Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on SIDETRADE and Tradegate 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 SIDETRADE with a short position of Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIDETRADE and Tradegate.
Diversification Opportunities for SIDETRADE and Tradegate
Good diversification
The 3 months correlation between SIDETRADE and Tradegate is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SIDETRADE EO 1 and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap and SIDETRADE 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 SIDETRADE EO 1 are associated (or correlated) with Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of SIDETRADE i.e., SIDETRADE and Tradegate go up and down completely randomly.
Pair Corralation between SIDETRADE and Tradegate
Assuming the 90 days horizon SIDETRADE EO 1 is expected to generate 3.23 times more return on investment than Tradegate. However, SIDETRADE is 3.23 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.1 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about 0.08 per unit of risk. If you would invest 21,600 in SIDETRADE EO 1 on October 12, 2024 and sell it today you would earn a total of 500.00 from holding SIDETRADE EO 1 or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIDETRADE EO 1 vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| SIDETRADE EO 1 |
| Tradegate AG Wertpap |
SIDETRADE and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIDETRADE and Tradegate
The main advantage of trading using opposite SIDETRADE and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIDETRADE position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| SIDETRADE vs. Burlington Stores | SIDETRADE vs. JIAHUA STORES | SIDETRADE vs. Fast Retailing Co | SIDETRADE vs. BJs Wholesale Club |
| Tradegate vs. SOFI TECHNOLOGIES | Tradegate vs. BioNTech SE | Tradegate vs. Eurasia Mining Plc | Tradegate vs. Agilent Technologies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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