Correlation Between Take Two and GX AI
Can any of the company-specific risk be diversified away by investing in both Take Two and GX AI 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 Take Two and GX AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and GX AI TECH, you can compare the effects of market volatilities on Take Two and GX AI 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 Take Two with a short position of GX AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and GX AI.
Diversification Opportunities for Take Two and GX AI
Very poor diversification
The 3 months correlation between Take and BAIQ39 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and GX AI TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GX AI TECH and Take Two 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 Take Two Interactive Software are associated (or correlated) with GX AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GX AI TECH has no effect on the direction of Take Two i.e., Take Two and GX AI go up and down completely randomly.
Pair Corralation between Take Two and GX AI
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 0.58 times more return on investment than GX AI. However, Take Two Interactive Software is 1.72 times less risky than GX AI. It trades about 0.0 of its potential returns per unit of risk. GX AI TECH is currently generating about 0.0 per unit of risk. If you would invest 28,196 in Take Two Interactive Software on October 22, 2024 and sell it today you would lose (230.00) from holding Take Two Interactive Software or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.89% |
| Values | Daily Returns |
Take Two Interactive Software vs. GX AI TECH
Performance |
| Timeline |
| Take Two Interactive |
| GX AI TECH |
Take Two and GX AI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and GX AI
The main advantage of trading using opposite Take Two and GX AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, GX AI 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 GX AI will offset losses from the drop in GX AI's long position.| Take Two vs. Teladoc Health | Take Two vs. Warner Music Group | Take Two vs. Delta Air Lines | Take Two vs. Healthcare Realty Trust |
| GX AI vs. Public Storage | GX AI vs. Take Two Interactive Software | GX AI vs. Fidelity National Information | GX AI vs. Bio Techne |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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