Correlation Between TRADEGATE and Linedata Services
Can any of the company-specific risk be diversified away by investing in both TRADEGATE and Linedata Services 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 TRADEGATE and Linedata Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEGATE and Linedata Services SA, you can compare the effects of market volatilities on TRADEGATE and Linedata Services 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 TRADEGATE with a short position of Linedata Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEGATE and Linedata Services.
Diversification Opportunities for TRADEGATE and Linedata Services
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRADEGATE and Linedata is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding TRADEGATE and Linedata Services SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linedata Services and TRADEGATE 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 TRADEGATE are associated (or correlated) with Linedata Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linedata Services has no effect on the direction of TRADEGATE i.e., TRADEGATE and Linedata Services go up and down completely randomly.
Pair Corralation between TRADEGATE and Linedata Services
Assuming the 90 days trading horizon TRADEGATE is expected to generate 0.17 times more return on investment than Linedata Services. However, TRADEGATE is 5.76 times less risky than Linedata Services. It trades about 0.0 of its potential returns per unit of risk. Linedata Services SA is currently generating about -0.16 per unit of risk. If you would invest 9,000 in TRADEGATE on October 19, 2024 and sell it today you would earn a total of 0.00 from holding TRADEGATE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEGATE vs. Linedata Services SA
Performance |
| Timeline |
| TRADEGATE |
| Linedata Services |
TRADEGATE and Linedata Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEGATE and Linedata Services
The main advantage of trading using opposite TRADEGATE and Linedata Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEGATE position performs unexpectedly, Linedata Services 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 Linedata Services will offset losses from the drop in Linedata Services' long position.| TRADEGATE vs. PTT Global Chemical | TRADEGATE vs. CREO MEDICAL GRP | TRADEGATE vs. Mitsui Chemicals | TRADEGATE vs. INDO RAMA SYNTHETIC |
| Linedata Services vs. H2O Retailing | Linedata Services vs. T MOBILE US | Linedata Services vs. CANON MARKETING JP | Linedata Services vs. TRADEGATE |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |