Correlation Between SOFTWARE MANSION and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION 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 SOFTWARE MANSION and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFTWARE MANSION SPOLKA and TEN SQUARE GAMES, you can compare the effects of market volatilities on SOFTWARE MANSION 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 SOFTWARE MANSION with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and TEN SQUARE.
Diversification Opportunities for SOFTWARE MANSION and TEN SQUARE
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SOFTWARE and TEN is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA 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 SOFTWARE MANSION 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 SOFTWARE MANSION SPOLKA 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 SOFTWARE MANSION i.e., SOFTWARE MANSION and TEN SQUARE go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and TEN SQUARE
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to generate 1.68 times more return on investment than TEN SQUARE. However, SOFTWARE MANSION is 1.68 times more volatile than TEN SQUARE GAMES. It trades about 0.02 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.03 per unit of risk. If you would invest 2,896 in SOFTWARE MANSION SPOLKA on August 29, 2024 and sell it today you would earn a total of 104.00 from holding SOFTWARE MANSION SPOLKA or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.71% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| TEN SQUARE GAMES |
SOFTWARE MANSION and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and TEN SQUARE
The main advantage of trading using opposite SOFTWARE MANSION and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION 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.| SOFTWARE MANSION vs. Quantum Software SA | SOFTWARE MANSION vs. Creotech Instruments SA | SOFTWARE MANSION vs. New Tech Venture | SOFTWARE MANSION vs. Intersport Polska SA |
| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. CI Games 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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