Correlation Between TEN SQUARE and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Carlson Investments 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 TEN SQUARE and Carlson Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Carlson Investments SA, you can compare the effects of market volatilities on TEN SQUARE and Carlson Investments 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 TEN SQUARE with a short position of Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Carlson Investments.
Diversification Opportunities for TEN SQUARE and Carlson Investments
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TEN and Carlson is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Carlson Investments go up and down completely randomly.
Pair Corralation between TEN SQUARE and Carlson Investments
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Carlson Investments. But the stock apears to be less risky and, when comparing its historical volatility, TEN SQUARE GAMES is 2.23 times less risky than Carlson Investments. The stock trades about -0.03 of its potential returns per unit of risk. The Carlson Investments SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Carlson Investments SA on August 27, 2024 and sell it today you would lose (82.00) from holding Carlson Investments SA or give up 15.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Carlson Investments SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Carlson Investments |
TEN SQUARE and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Carlson Investments
The main advantage of trading using opposite TEN SQUARE and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.The idea behind TEN SQUARE GAMES and Carlson Investments SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Carlson Investments vs. Movie Games SA | Carlson Investments vs. Gaming Factory SA | Carlson Investments vs. Creotech Instruments SA | Carlson Investments vs. Pyramid Games SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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