Correlation Between Baked Games and HYDROTOR
Can any of the company-specific risk be diversified away by investing in both Baked Games and HYDROTOR 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 Baked Games and HYDROTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baked Games SA and HYDROTOR SA, you can compare the effects of market volatilities on Baked Games and HYDROTOR 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 Baked Games with a short position of HYDROTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baked Games and HYDROTOR.
Diversification Opportunities for Baked Games and HYDROTOR
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baked and HYDROTOR is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Baked Games SA and HYDROTOR SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYDROTOR SA and Baked 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 Baked Games SA are associated (or correlated) with HYDROTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYDROTOR SA has no effect on the direction of Baked Games i.e., Baked Games and HYDROTOR go up and down completely randomly.
Pair Corralation between Baked Games and HYDROTOR
Assuming the 90 days trading horizon Baked Games SA is expected to generate 2.12 times more return on investment than HYDROTOR. However, Baked Games is 2.12 times more volatile than HYDROTOR SA. It trades about -0.02 of its potential returns per unit of risk. HYDROTOR SA is currently generating about -0.2 per unit of risk. If you would invest 346.00 in Baked Games SA on August 30, 2024 and sell it today you would lose (34.00) from holding Baked Games SA or give up 9.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.86% |
| Values | Daily Returns |
Baked Games SA vs. HYDROTOR SA
Performance |
| Timeline |
| Baked Games SA |
| HYDROTOR SA |
Baked Games and HYDROTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baked Games and HYDROTOR
The main advantage of trading using opposite Baked Games and HYDROTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baked Games position performs unexpectedly, HYDROTOR 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 HYDROTOR will offset losses from the drop in HYDROTOR's long position.| Baked Games vs. Banco Santander SA | Baked Games vs. UniCredit SpA | Baked Games vs. CEZ as | Baked Games vs. Polski Koncern Naftowy |
| HYDROTOR vs. Baked Games SA | HYDROTOR vs. TEN SQUARE GAMES | HYDROTOR vs. Road Studio SA | HYDROTOR vs. Marie Brizard Wine |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |