Correlation Between CD PROJEKT and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both CD PROJEKT and TEN SQUARE 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 CD PROJEKT and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CD PROJEKT SA and TEN SQUARE GAMES, you can compare the effects of market volatilities on CD PROJEKT and TEN SQUARE 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 CD PROJEKT with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD PROJEKT and TEN SQUARE.
Diversification Opportunities for CD PROJEKT and TEN SQUARE
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CDR and TEN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CD PROJEKT SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and CD PROJEKT 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 CD PROJEKT SA are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of CD PROJEKT i.e., CD PROJEKT and TEN SQUARE go up and down completely randomly.
Pair Corralation between CD PROJEKT and TEN SQUARE
Assuming the 90 days trading horizon CD PROJEKT SA is expected to generate 1.4 times more return on investment than TEN SQUARE. However, CD PROJEKT is 1.4 times more volatile than TEN SQUARE GAMES. It trades about 0.16 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.08 per unit of risk. If you would invest 19,350 in CD PROJEKT SA on November 2, 2024 and sell it today you would earn a total of 1,750 from holding CD PROJEKT SA or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CD PROJEKT SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| CD PROJEKT SA |
| TEN SQUARE GAMES |
CD PROJEKT and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CD PROJEKT and TEN SQUARE
The main advantage of trading using opposite CD PROJEKT and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD PROJEKT position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| CD PROJEKT vs. Skyline Investment SA | CD PROJEKT vs. SOFTWARE MANSION SPOLKA | CD PROJEKT vs. Quantum Software SA | CD PROJEKT vs. Santander Bank Polska |
| TEN SQUARE vs. Quantum Software SA | TEN SQUARE vs. PZ Cormay SA | TEN SQUARE vs. mBank SA | TEN SQUARE vs. GreenX Metals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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