Correlation Between TEN SQUARE and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Intersport Polska 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 Intersport Polska 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 Intersport Polska SA, you can compare the effects of market volatilities on TEN SQUARE and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Intersport Polska.
Diversification Opportunities for TEN SQUARE and Intersport Polska
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TEN and Intersport is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Intersport Polska go up and down completely randomly.
Pair Corralation between TEN SQUARE and Intersport Polska
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Intersport Polska. But the stock apears to be less risky and, when comparing its historical volatility, TEN SQUARE GAMES is 2.36 times less risky than Intersport Polska. The stock trades about -0.1 of its potential returns per unit of risk. The Intersport Polska SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Intersport Polska SA on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Intersport Polska SA or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Intersport Polska SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Intersport Polska |
TEN SQUARE and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Intersport Polska
The main advantage of trading using opposite TEN SQUARE and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.The idea behind TEN SQUARE GAMES and Intersport Polska 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.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. Movie 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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