Correlation Between LBG Media and Take Two
Can any of the company-specific risk be diversified away by investing in both LBG Media and Take Two 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 LBG Media and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LBG Media PLC and Take Two Interactive Software, you can compare the effects of market volatilities on LBG Media and Take Two 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 LBG Media with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of LBG Media and Take Two.
Diversification Opportunities for LBG Media and Take Two
Very good diversification
The 3 months correlation between LBG and Take is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding LBG Media PLC and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and LBG Media 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 LBG Media PLC are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of LBG Media i.e., LBG Media and Take Two go up and down completely randomly.
Pair Corralation between LBG Media and Take Two
Assuming the 90 days trading horizon LBG Media PLC is expected to under-perform the Take Two. In addition to that, LBG Media is 1.2 times more volatile than Take Two Interactive Software. It trades about -0.06 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.45 per unit of volatility. If you would invest 16,085 in Take Two Interactive Software on August 28, 2024 and sell it today you would earn a total of 2,809 from holding Take Two Interactive Software or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LBG Media PLC vs. Take Two Interactive Software
Performance |
| Timeline |
| LBG Media PLC |
| Take Two Interactive |
LBG Media and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LBG Media and Take Two
The main advantage of trading using opposite LBG Media and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LBG Media position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| LBG Media vs. SupplyMe Capital PLC | LBG Media vs. SM Energy Co | LBG Media vs. FuelCell Energy | LBG Media vs. Grand Vision Media |
| Take Two vs. Samsung Electronics Co | Take Two vs. Samsung Electronics Co | Take Two vs. Hyundai Motor | Take Two vs. Toyota Motor Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |