Correlation Between Academy Sports and Take Two
Can any of the company-specific risk be diversified away by investing in both Academy Sports and Take Two 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 Academy Sports and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports and and Take Two Interactive Software, you can compare the effects of market volatilities on Academy Sports and Take Two 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 Academy Sports with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Take Two.
Diversification Opportunities for Academy Sports and Take Two
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Academy and Take is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports and and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and Academy Sports 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 Academy Sports and are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Academy Sports i.e., Academy Sports and Take Two go up and down completely randomly.
Pair Corralation between Academy Sports and Take Two
Assuming the 90 days trading horizon Academy Sports and is expected to generate 0.97 times more return on investment than Take Two. However, Academy Sports and is 1.03 times less risky than Take Two. It trades about 0.21 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about -0.01 per unit of risk. If you would invest 7,037 in Academy Sports and on November 1, 2024 and sell it today you would earn a total of 1,355 from holding Academy Sports and or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.87% |
| Values | Daily Returns |
Academy Sports and vs. Take Two Interactive Software
Performance |
| Timeline |
| Academy Sports |
| Take Two Interactive |
Academy Sports and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Take Two
The main advantage of trading using opposite Academy Sports and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| Academy Sports vs. PENN Entertainment, | Academy Sports vs. UnitedHealth Group Incorporated | Academy Sports vs. Live Nation Entertainment, | Academy Sports vs. Charter Communications |
| Take Two vs. Annaly Capital Management, | Take Two vs. Patria Investments Limited | Take Two vs. Tyson Foods | Take Two vs. Marfrig Global Foods |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |