Correlation Between TROPHY GAMES and Konsolidator
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and Konsolidator 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 TROPHY GAMES and Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES Development and Konsolidator AS, you can compare the effects of market volatilities on TROPHY GAMES and Konsolidator 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 TROPHY GAMES with a short position of Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and Konsolidator.
Diversification Opportunities for TROPHY GAMES and Konsolidator
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between TROPHY and Konsolidator is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES Development and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator AS and TROPHY GAMES 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 TROPHY GAMES Development are associated (or correlated) with Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and Konsolidator go up and down completely randomly.
Pair Corralation between TROPHY GAMES and Konsolidator
Assuming the 90 days trading horizon TROPHY GAMES Development is expected to generate 0.93 times more return on investment than Konsolidator. However, TROPHY GAMES Development is 1.07 times less risky than Konsolidator. It trades about 0.04 of its potential returns per unit of risk. Konsolidator AS is currently generating about 0.01 per unit of risk. If you would invest 479.00 in TROPHY GAMES Development on December 4, 2024 and sell it today you would earn a total of 216.00 from holding TROPHY GAMES Development or generate 45.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES Development vs. Konsolidator AS
Performance |
| Timeline |
| TROPHY GAMES Development |
| Konsolidator AS |
TROPHY GAMES and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and Konsolidator
The main advantage of trading using opposite TROPHY GAMES and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| TROPHY GAMES vs. North Media AS | TROPHY GAMES vs. Bactiquant AS | TROPHY GAMES vs. FOM Technologies AS | TROPHY GAMES vs. MapsPeople AS |
| Konsolidator vs. Lollands Bank | Konsolidator vs. Nordfyns Bank AS | Konsolidator vs. BankInv Kort HY | Konsolidator vs. Scandinavian Tobacco Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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