Correlation Between Logintrade and True Games
Can any of the company-specific risk be diversified away by investing in both Logintrade 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 Logintrade and True Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and True Games Syndicate, you can compare the effects of market volatilities on Logintrade 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 Logintrade with a short position of True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and True Games.
Diversification Opportunities for Logintrade and True Games
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Logintrade and True is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade 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 Logintrade 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 Logintrade 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 Logintrade i.e., Logintrade and True Games go up and down completely randomly.
Pair Corralation between Logintrade and True Games
Assuming the 90 days trading horizon Logintrade SA is expected to generate 0.69 times more return on investment than True Games. However, Logintrade SA is 1.44 times less risky than True Games. It trades about 0.05 of its potential returns per unit of risk. True Games Syndicate is currently generating about 0.04 per unit of risk. If you would invest 298.00 in Logintrade SA on November 8, 2024 and sell it today you would earn a total of 72.00 from holding Logintrade SA or generate 24.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.24% |
| Values | Daily Returns |
Logintrade SA vs. True Games Syndicate
Performance |
| Timeline |
| Logintrade SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| True Games Syndicate |
Logintrade and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and True Games
The main advantage of trading using opposite Logintrade and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade 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.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
| True Games vs. Clean Carbon Energy | True Games vs. Agroliga Group PLC | True Games vs. Vee SA | True Games vs. Novina 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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