Correlation Between LION ONE and Take-Two Interactive
Can any of the company-specific risk be diversified away by investing in both LION ONE and Take-Two Interactive 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 LION ONE and Take-Two Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LION ONE METALS and Take Two Interactive Software, you can compare the effects of market volatilities on LION ONE and Take-Two Interactive 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 LION ONE with a short position of Take-Two Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and Take-Two Interactive.
Diversification Opportunities for LION ONE and Take-Two Interactive
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LION and Take-Two is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS 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 LION ONE 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 LION ONE METALS are associated (or correlated) with Take-Two Interactive. 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 LION ONE i.e., LION ONE and Take-Two Interactive go up and down completely randomly.
Pair Corralation between LION ONE and Take-Two Interactive
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the Take-Two Interactive. In addition to that, LION ONE is 3.3 times more volatile than Take Two Interactive Software. It trades about -0.05 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.28 per unit of volatility. If you would invest 13,476 in Take Two Interactive Software on September 25, 2024 and sell it today you would earn a total of 4,036 from holding Take Two Interactive Software or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LION ONE METALS vs. Take Two Interactive Software
Performance |
| Timeline |
| LION ONE METALS |
| Take Two Interactive |
LION ONE and Take-Two Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and Take-Two Interactive
The main advantage of trading using opposite LION ONE and Take-Two Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, Take-Two Interactive 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 Interactive will offset losses from the drop in Take-Two Interactive's long position.| LION ONE vs. Boyd Gaming | LION ONE vs. ANGLER GAMING PLC | LION ONE vs. CI GAMES SA | LION ONE vs. EAST SIDE GAMES |
| Take-Two Interactive vs. Yuexiu Transport Infrastructure | Take-Two Interactive vs. SPORTING | Take-Two Interactive vs. COLUMBIA SPORTSWEAR | Take-Two Interactive vs. GREENX METALS LTD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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