Correlation Between CEZ As and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both CEZ As 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 CEZ As and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and TEN SQUARE GAMES, you can compare the effects of market volatilities on CEZ As 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 CEZ As with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and TEN SQUARE.
Diversification Opportunities for CEZ As and TEN SQUARE
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CEZ and TEN is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as 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 CEZ As 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 CEZ as 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 CEZ As i.e., CEZ As and TEN SQUARE go up and down completely randomly.
Pair Corralation between CEZ As and TEN SQUARE
Assuming the 90 days trading horizon CEZ as is expected to generate 0.91 times more return on investment than TEN SQUARE. However, CEZ as is 1.1 times less risky than TEN SQUARE. It trades about 0.13 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.07 per unit of risk. If you would invest 15,800 in CEZ as on August 27, 2024 and sell it today you would earn a total of 830.00 from holding CEZ as or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEZ as vs. TEN SQUARE GAMES
Performance |
| Timeline |
| CEZ as |
| TEN SQUARE GAMES |
CEZ As and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and TEN SQUARE
The main advantage of trading using opposite CEZ As and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As 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.| CEZ As vs. Asseco Business Solutions | CEZ As vs. Detalion Games SA | CEZ As vs. Asseco South Eastern | CEZ As vs. Movie Games SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |