Correlation Between Tradegate and SPORTING
Can any of the company-specific risk be diversified away by investing in both Tradegate and SPORTING 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 SPORTING 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 SPORTING, you can compare the effects of market volatilities on Tradegate and SPORTING 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 SPORTING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and SPORTING.
Diversification Opportunities for Tradegate and SPORTING
Good diversification
The 3 months correlation between Tradegate and SPORTING is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and SPORTING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORTING 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 SPORTING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORTING has no effect on the direction of Tradegate i.e., Tradegate and SPORTING go up and down completely randomly.
Pair Corralation between Tradegate and SPORTING
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to generate 0.04 times more return on investment than SPORTING. However, Tradegate AG Wertpapierhandelsbank is 24.09 times less risky than SPORTING. It trades about -0.24 of its potential returns per unit of risk. SPORTING is currently generating about -0.13 per unit of risk. If you would invest 8,850 in Tradegate AG Wertpapierhandelsbank on October 18, 2024 and sell it today you would lose (100.00) from holding Tradegate AG Wertpapierhandelsbank or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. SPORTING
Performance |
| Timeline |
| Tradegate AG Wertpap |
| SPORTING |
Tradegate and SPORTING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and SPORTING
The main advantage of trading using opposite Tradegate and SPORTING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, SPORTING 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 SPORTING will offset losses from the drop in SPORTING's long position.| Tradegate vs. Zijin Mining Group | Tradegate vs. MCEWEN MINING INC | Tradegate vs. Jacquet Metal Service | Tradegate vs. SWISS WATER DECAFFCOFFEE |
| SPORTING vs. Tradegate AG Wertpapierhandelsbank | SPORTING vs. PTT Global Chemical | SPORTING vs. Sekisui Chemical Co | SPORTING vs. Fast Retailing Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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