Correlation Between Carlson Investments and Detalion Games
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Detalion 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 Carlson Investments and Detalion Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Detalion Games SA, you can compare the effects of market volatilities on Carlson Investments and Detalion 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 Carlson Investments with a short position of Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Detalion Games.
Diversification Opportunities for Carlson Investments and Detalion Games
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlson and Detalion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Detalion Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detalion Games SA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Detalion Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detalion Games SA has no effect on the direction of Carlson Investments i.e., Carlson Investments and Detalion Games go up and down completely randomly.
Pair Corralation between Carlson Investments and Detalion Games
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 0.81 times more return on investment than Detalion Games. However, Carlson Investments SA is 1.23 times less risky than Detalion Games. It trades about 0.11 of its potential returns per unit of risk. Detalion Games SA is currently generating about -0.31 per unit of risk. If you would invest 412.00 in Carlson Investments SA on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Carlson Investments SA or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Carlson Investments SA vs. Detalion Games SA
Performance |
| Timeline |
| Carlson Investments |
| Detalion Games SA |
Carlson Investments and Detalion Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Detalion Games
The main advantage of trading using opposite Carlson Investments and Detalion Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Detalion 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 Detalion Games will offset losses from the drop in Detalion Games' long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| Detalion Games vs. Banco Santander SA | Detalion Games vs. UniCredit SpA | Detalion Games vs. CEZ as | Detalion Games vs. Polski Koncern Naftowy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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