Correlation Between Sibanye Stillwater and Take Two
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater 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 Sibanye Stillwater and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater Limited and Take Two Interactive Software, you can compare the effects of market volatilities on Sibanye Stillwater 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 Sibanye Stillwater with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and Take Two.
Diversification Opportunities for Sibanye Stillwater and Take Two
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sibanye and Take is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater Limited 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 Sibanye Stillwater 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 Sibanye Stillwater Limited 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 Sibanye Stillwater i.e., Sibanye Stillwater and Take Two go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and Take Two
Assuming the 90 days trading horizon Sibanye Stillwater is expected to generate 6.24 times less return on investment than Take Two. In addition to that, Sibanye Stillwater is 1.88 times more volatile than Take Two Interactive Software. It trades about 0.01 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.13 per unit of volatility. If you would invest 19,950 in Take Two Interactive Software on November 3, 2024 and sell it today you would earn a total of 7,278 from holding Take Two Interactive Software or generate 36.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sibanye Stillwater Limited vs. Take Two Interactive Software
Performance |
| Timeline |
| Sibanye Stillwater |
| Take Two Interactive |
Sibanye Stillwater and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and Take Two
The main advantage of trading using opposite Sibanye Stillwater and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater 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.| Sibanye Stillwater vs. Datadog, | Sibanye Stillwater vs. Pure Storage, | Sibanye Stillwater vs. Nordon Indstrias Metalrgicas | Sibanye Stillwater vs. Cardinal Health, |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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