Correlation Between LSI Software and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both LSI Software 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 LSI Software and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LSI Software SA and TEN SQUARE GAMES, you can compare the effects of market volatilities on LSI Software 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 LSI Software with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and TEN SQUARE.
Diversification Opportunities for LSI Software and TEN SQUARE
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LSI and TEN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA 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 LSI Software 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 LSI Software SA 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 LSI Software i.e., LSI Software and TEN SQUARE go up and down completely randomly.
Pair Corralation between LSI Software and TEN SQUARE
Assuming the 90 days trading horizon LSI Software SA is expected to under-perform the TEN SQUARE. In addition to that, LSI Software is 1.32 times more volatile than TEN SQUARE GAMES. It trades about -0.04 of its total potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.19 per unit of volatility. If you would invest 7,280 in TEN SQUARE GAMES on October 26, 2024 and sell it today you would earn a total of 470.00 from holding TEN SQUARE GAMES or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LSI Software SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| LSI Software SA |
| TEN SQUARE GAMES |
LSI Software and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and TEN SQUARE
The main advantage of trading using opposite LSI Software and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software 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.| LSI Software vs. PLAYWAY SA | LSI Software vs. UF Games SA | LSI Software vs. Carlson Investments SA | LSI Software vs. Gamedust SA |
| TEN SQUARE vs. PZ Cormay SA | TEN SQUARE vs. Medicalg | TEN SQUARE vs. Saule Technologies SA | TEN SQUARE vs. LSI Software 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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