Correlation Between Take Two and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Take Two and Sibanye Stillwater 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 Sibanye Stillwater 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 Sibanye Stillwater Limited, you can compare the effects of market volatilities on Take Two and Sibanye Stillwater 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 Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Sibanye Stillwater.
Diversification Opportunities for Take Two and Sibanye Stillwater
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Take and Sibanye is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater 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 Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of Take Two i.e., Take Two and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Take Two and Sibanye Stillwater
Assuming the 90 days trading horizon Take Two Interactive Software is expected to generate 0.55 times more return on investment than Sibanye Stillwater. However, Take Two Interactive Software is 1.82 times less risky than Sibanye Stillwater. It trades about 0.09 of its potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about -0.03 per unit of risk. If you would invest 12,861 in Take Two Interactive Software on September 14, 2024 and sell it today you would earn a total of 15,587 from holding Take Two Interactive Software or generate 121.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Take Two Interactive |
| Sibanye Stillwater |
Take Two and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Sibanye Stillwater
The main advantage of trading using opposite Take Two and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| Take Two vs. Taiwan Semiconductor Manufacturing | Take Two vs. Zoom Video Communications | Take Two vs. Spotify Technology SA | Take Two vs. G2D Investments |
| Sibanye Stillwater vs. Extra Space Storage | Sibanye Stillwater vs. Paycom Software | Sibanye Stillwater vs. Tres Tentos Agroindustrial | Sibanye Stillwater vs. Take Two Interactive Software |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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