Correlation Between HM Inwest and True Games
Can any of the company-specific risk be diversified away by investing in both HM Inwest and True 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 HM Inwest and True Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and True Games Syndicate, you can compare the effects of market volatilities on HM Inwest and True 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 HM Inwest with a short position of True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and True Games.
Diversification Opportunities for HM Inwest and True Games
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HMI and True is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and True Games Syndicate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Games Syndicate and HM Inwest 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 HM Inwest SA are associated (or correlated) with True Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Games Syndicate has no effect on the direction of HM Inwest i.e., HM Inwest and True Games go up and down completely randomly.
Pair Corralation between HM Inwest and True Games
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 0.33 times more return on investment than True Games. However, HM Inwest SA is 3.06 times less risky than True Games. It trades about 0.25 of its potential returns per unit of risk. True Games Syndicate is currently generating about -0.35 per unit of risk. If you would invest 4,610 in HM Inwest SA on August 29, 2024 and sell it today you would earn a total of 210.00 from holding HM Inwest SA or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HM Inwest SA vs. True Games Syndicate
Performance |
| Timeline |
| HM Inwest SA |
| True Games Syndicate |
HM Inwest and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and True Games
The main advantage of trading using opposite HM Inwest and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, True 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 True Games will offset losses from the drop in True Games' long position.| HM Inwest vs. True Games Syndicate | HM Inwest vs. Tower Investments SA | HM Inwest vs. Kool2play SA | HM Inwest vs. Gaming Factory SA |
| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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