Correlation Between TEN SQUARE and Movie Games
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Movie Games 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 Movie Games 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 Movie Games SA, you can compare the effects of market volatilities on TEN SQUARE and Movie Games 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 Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Movie Games.
Diversification Opportunities for TEN SQUARE and Movie Games
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TEN and Movie is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA 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 Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Movie Games go up and down completely randomly.
Pair Corralation between TEN SQUARE and Movie Games
Assuming the 90 days trading horizon TEN SQUARE is expected to generate 4.46 times less return on investment than Movie Games. But when comparing it to its historical volatility, TEN SQUARE GAMES is 1.79 times less risky than Movie Games. It trades about 0.07 of its potential returns per unit of risk. Movie Games SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,650 in Movie Games SA on November 4, 2024 and sell it today you would earn a total of 222.00 from holding Movie Games SA or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Movie Games SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Movie Games SA |
TEN SQUARE and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Movie Games
The main advantage of trading using opposite TEN SQUARE and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. CI Games SA |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. TEN SQUARE GAMES |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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