Correlation Between Cessatech and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both Cessatech 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 Cessatech and TROPHY GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cessatech AS and TROPHY GAMES Development, you can compare the effects of market volatilities on Cessatech 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 Cessatech with a short position of TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cessatech and TROPHY GAMES.
Diversification Opportunities for Cessatech and TROPHY GAMES
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cessatech and TROPHY is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cessatech AS and TROPHY GAMES Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES Development and Cessatech 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 Cessatech AS 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 Development has no effect on the direction of Cessatech i.e., Cessatech and TROPHY GAMES go up and down completely randomly.
Pair Corralation between Cessatech and TROPHY GAMES
Assuming the 90 days trading horizon Cessatech AS is expected to under-perform the TROPHY GAMES. But the stock apears to be less risky and, when comparing its historical volatility, Cessatech AS is 1.08 times less risky than TROPHY GAMES. The stock trades about -0.12 of its potential returns per unit of risk. The TROPHY GAMES Development is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 409.00 in TROPHY GAMES Development on September 12, 2024 and sell it today you would earn a total of 266.00 from holding TROPHY GAMES Development or generate 65.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.66% |
| Values | Daily Returns |
Cessatech AS vs. TROPHY GAMES Development
Performance |
| Timeline |
| Cessatech AS |
| TROPHY GAMES Development |
Cessatech and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cessatech and TROPHY GAMES
The main advantage of trading using opposite Cessatech and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cessatech 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.| Cessatech vs. Skjern Bank AS | Cessatech vs. Dataproces Group AS | Cessatech vs. Laan Spar Bank | Cessatech vs. Scandinavian Tobacco Group |
| TROPHY GAMES vs. North Media AS | TROPHY GAMES vs. Bactiquant AS | TROPHY GAMES vs. FOM Technologies AS | TROPHY GAMES vs. MapsPeople AS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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