Correlation Between TRADEDOUBLER and Tradegate
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and Tradegate 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 TRADEDOUBLER and Tradegate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on TRADEDOUBLER and Tradegate 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 TRADEDOUBLER with a short position of Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and Tradegate.
Diversification Opportunities for TRADEDOUBLER and Tradegate
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRADEDOUBLER and Tradegate is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and Tradegate go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and Tradegate
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 2.45 times more return on investment than Tradegate. However, TRADEDOUBLER is 2.45 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about -0.01 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.08 per unit of risk. If you would invest 36.00 in TRADEDOUBLER AB SK on October 13, 2024 and sell it today you would lose (6.00) from holding TRADEDOUBLER AB SK or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| Tradegate AG Wertpap |
TRADEDOUBLER and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and Tradegate
The main advantage of trading using opposite TRADEDOUBLER and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| TRADEDOUBLER vs. COVIVIO HOTELS INH | TRADEDOUBLER vs. THORNEY TECHS LTD | TRADEDOUBLER vs. Digilife Technologies Limited | TRADEDOUBLER vs. Minerals Technologies |
| Tradegate vs. SOFI TECHNOLOGIES | Tradegate vs. BioNTech SE | Tradegate vs. Eurasia Mining Plc | Tradegate vs. Agilent Technologies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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