Correlation Between True Games and 11 Bit
Can any of the company-specific risk be diversified away by investing in both True Games and 11 Bit 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 True Games and 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between True Games Syndicate and 11 bit studios, you can compare the effects of market volatilities on True Games and 11 Bit 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 True Games with a short position of 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Games and 11 Bit.
Diversification Opportunities for True Games and 11 Bit
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between True and 11B is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding True Games Syndicate and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios and True 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 True Games Syndicate are associated (or correlated) with 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of True Games i.e., True Games and 11 Bit go up and down completely randomly.
Pair Corralation between True Games and 11 Bit
Assuming the 90 days trading horizon True Games Syndicate is expected to under-perform the 11 Bit. In addition to that, True Games is 1.28 times more volatile than 11 bit studios. It trades about -0.1 of its total potential returns per unit of risk. 11 bit studios is currently generating about -0.05 per unit of volatility. If you would invest 25,800 in 11 bit studios on September 1, 2024 and sell it today you would lose (700.00) from holding 11 bit studios or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.0% |
| Values | Daily Returns |
True Games Syndicate vs. 11 bit studios
Performance |
| Timeline |
| True Games Syndicate |
| 11 bit studios |
True Games and 11 Bit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Games and 11 Bit
The main advantage of trading using opposite True Games and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Games position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.| True Games vs. mBank SA | True Games vs. BNP Paribas Bank | True Games vs. Gamedust SA | True Games vs. GreenX Metals |
| 11 Bit vs. Movie Games SA | 11 Bit vs. X Trade Brokers | 11 Bit vs. SOFTWARE MANSION SPOLKA | 11 Bit 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |