Correlation Between Take Two and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both Take Two and Credit Acceptance 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 Credit Acceptance 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 Credit Acceptance, you can compare the effects of market volatilities on Take Two and Credit Acceptance 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 Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Credit Acceptance.
Diversification Opportunities for Take Two and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Take and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance 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 Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of Take Two i.e., Take Two and Credit Acceptance go up and down completely randomly.
Pair Corralation between Take Two and Credit Acceptance
If you would invest 23,023 in Take Two Interactive Software on August 28, 2024 and sell it today you would earn a total of 4,330 from holding Take Two Interactive Software or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Credit Acceptance
Performance |
| Timeline |
| Take Two Interactive |
| Credit Acceptance |
Take Two and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Credit Acceptance
The main advantage of trading using opposite Take Two and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| Take Two vs. Deutsche Bank Aktiengesellschaft | Take Two vs. Verizon Communications | Take Two vs. GP Investments | Take Two vs. Charter Communications |
| Credit Acceptance vs. Bread Financial Holdings | Credit Acceptance vs. Fras le SA | Credit Acceptance vs. Clave Indices De | Credit Acceptance vs. BTG Pactual Logstica |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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