Correlation Between Tradegate and Pure Storage
Can any of the company-specific risk be diversified away by investing in both Tradegate and Pure Storage 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 Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Pure Storage, you can compare the effects of market volatilities on Tradegate and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Pure Storage.
Diversification Opportunities for Tradegate and Pure Storage
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tradegate and Pure is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 AG Wertpapierhandelsbank are associated (or correlated) with Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of Tradegate i.e., Tradegate and Pure Storage go up and down completely randomly.
Pair Corralation between Tradegate and Pure Storage
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to under-perform the Pure Storage. But the stock apears to be less risky and, when comparing its historical volatility, Tradegate AG Wertpapierhandelsbank is 13.72 times less risky than Pure Storage. The stock trades about -0.19 of its potential returns per unit of risk. The Pure Storage is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,510 in Pure Storage on September 14, 2024 and sell it today you would earn a total of 1,338 from holding Pure Storage or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Pure Storage
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Pure Storage |
Tradegate and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Pure Storage
The main advantage of trading using opposite Tradegate and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
| Pure Storage vs. CDN IMPERIAL BANK | Pure Storage vs. Chiba Bank | Pure Storage vs. Tradegate AG Wertpapierhandelsbank | Pure Storage vs. PT Bank Maybank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |