Correlation Between TEN SQUARE and Render Cube
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Render Cube 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 Render Cube 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 Render Cube SA, you can compare the effects of market volatilities on TEN SQUARE and Render Cube 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 Render Cube. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Render Cube.
Diversification Opportunities for TEN SQUARE and Render Cube
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TEN and Render is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Render Cube SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Render Cube 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 Render Cube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Render Cube SA has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Render Cube go up and down completely randomly.
Pair Corralation between TEN SQUARE and Render Cube
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Render Cube. But the stock apears to be less risky and, when comparing its historical volatility, TEN SQUARE GAMES is 1.26 times less risky than Render Cube. The stock trades about -0.03 of its potential returns per unit of risk. The Render Cube SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,038 in Render Cube SA on August 31, 2024 and sell it today you would lose (438.00) from holding Render Cube SA or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.18% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Render Cube SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Render Cube SA |
TEN SQUARE and Render Cube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Render Cube
The main advantage of trading using opposite TEN SQUARE and Render Cube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Render Cube 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 Render Cube will offset losses from the drop in Render Cube'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 |
| Render Cube vs. Ultimate Games SA | Render Cube vs. Live Motion Games | Render Cube vs. TEN SQUARE GAMES | Render Cube vs. Kool2play 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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