Correlation Between Baked Games and Hortico SA
Can any of the company-specific risk be diversified away by investing in both Baked Games and Hortico SA 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 Hortico SA 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 Hortico SA, you can compare the effects of market volatilities on Baked Games and Hortico SA 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 Hortico SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baked Games and Hortico SA.
Diversification Opportunities for Baked Games and Hortico SA
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baked and Hortico is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Baked Games SA and Hortico SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hortico 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 Hortico SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hortico SA has no effect on the direction of Baked Games i.e., Baked Games and Hortico SA go up and down completely randomly.
Pair Corralation between Baked Games and Hortico SA
Assuming the 90 days trading horizon Baked Games SA is expected to under-perform the Hortico SA. In addition to that, Baked Games is 1.59 times more volatile than Hortico SA. It trades about -0.05 of its total potential returns per unit of risk. Hortico SA is currently generating about 0.06 per unit of volatility. If you would invest 468.00 in Hortico SA on September 2, 2024 and sell it today you would earn a total of 177.00 from holding Hortico SA or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.44% |
| Values | Daily Returns |
Baked Games SA vs. Hortico SA
Performance |
| Timeline |
| Baked Games SA |
| Hortico SA |
Baked Games and Hortico SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baked Games and Hortico SA
The main advantage of trading using opposite Baked Games and Hortico SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baked Games position performs unexpectedly, Hortico SA 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 Hortico SA will offset losses from the drop in Hortico SA's long position.| Baked Games vs. Detalion Games SA | Baked Games vs. Varsav Game Studios | Baked Games vs. Medicalg | Baked Games vs. Intersport Polska SA |
| Hortico SA vs. Quantum Software SA | Hortico SA vs. Varsav Game Studios | Hortico SA vs. Movie Games SA | Hortico SA vs. BNP Paribas Bank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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