Correlation Between TEN SQUARE and RAFAKO SA
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and RAFAKO SA 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 RAFAKO SA 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 RAFAKO SA, you can compare the effects of market volatilities on TEN SQUARE and RAFAKO SA 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 RAFAKO SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and RAFAKO SA.
Diversification Opportunities for TEN SQUARE and RAFAKO SA
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TEN and RAFAKO is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and RAFAKO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAFAKO 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 RAFAKO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAFAKO SA has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and RAFAKO SA go up and down completely randomly.
Pair Corralation between TEN SQUARE and RAFAKO SA
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 0.32 times more return on investment than RAFAKO SA. However, TEN SQUARE GAMES is 3.15 times less risky than RAFAKO SA. It trades about -0.12 of its potential returns per unit of risk. RAFAKO SA is currently generating about -0.13 per unit of risk. If you would invest 8,275 in TEN SQUARE GAMES on August 31, 2024 and sell it today you would lose (520.00) from holding TEN SQUARE GAMES or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. RAFAKO SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| RAFAKO SA |
TEN SQUARE and RAFAKO SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and RAFAKO SA
The main advantage of trading using opposite TEN SQUARE and RAFAKO SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, RAFAKO SA 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 RAFAKO SA will offset losses from the drop in RAFAKO SA's long position.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. CI Games SA | TEN SQUARE vs. Ultimate Games SA |
| RAFAKO SA vs. LSI Software SA | RAFAKO SA vs. Biztech Konsulting SA | RAFAKO SA vs. Carlson Investments SA | RAFAKO SA vs. MW Trade 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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