Correlation Between BLUESCOPE STEEL and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both BLUESCOPE STEEL and TROPHY GAMES 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 BLUESCOPE STEEL and TROPHY GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BLUESCOPE STEEL and TROPHY GAMES DEV, you can compare the effects of market volatilities on BLUESCOPE STEEL and TROPHY GAMES 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 BLUESCOPE STEEL with a short position of TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUESCOPE STEEL and TROPHY GAMES.
Diversification Opportunities for BLUESCOPE STEEL and TROPHY GAMES
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BLUESCOPE and TROPHY is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BLUESCOPE STEEL and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV and BLUESCOPE STEEL 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 BLUESCOPE STEEL are associated (or correlated) with TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of BLUESCOPE STEEL i.e., BLUESCOPE STEEL and TROPHY GAMES go up and down completely randomly.
Pair Corralation between BLUESCOPE STEEL and TROPHY GAMES
Assuming the 90 days trading horizon BLUESCOPE STEEL is expected to generate 0.76 times more return on investment than TROPHY GAMES. However, BLUESCOPE STEEL is 1.31 times less risky than TROPHY GAMES. It trades about -0.05 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about -0.14 per unit of risk. If you would invest 1,330 in BLUESCOPE STEEL on September 13, 2024 and sell it today you would lose (40.00) from holding BLUESCOPE STEEL or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BLUESCOPE STEEL vs. TROPHY GAMES DEV
Performance |
| Timeline |
| BLUESCOPE STEEL |
| TROPHY GAMES DEV |
BLUESCOPE STEEL and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLUESCOPE STEEL and TROPHY GAMES
The main advantage of trading using opposite BLUESCOPE STEEL and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUESCOPE STEEL position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc |
| TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Superior Plus Corp | TROPHY GAMES vs. SIVERS SEMICONDUCTORS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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