Correlation Between True Games and SUNEX SA
Can any of the company-specific risk be diversified away by investing in both True Games and SUNEX 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 True Games and SUNEX SA 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 SUNEX SA, you can compare the effects of market volatilities on True Games and SUNEX 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 True Games with a short position of SUNEX SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Games and SUNEX SA.
Diversification Opportunities for True Games and SUNEX SA
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between True and SUNEX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding True Games Syndicate and SUNEX SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNEX SA 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 SUNEX SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNEX SA has no effect on the direction of True Games i.e., True Games and SUNEX SA go up and down completely randomly.
Pair Corralation between True Games and SUNEX SA
Assuming the 90 days trading horizon True Games Syndicate is expected to generate 2.66 times more return on investment than SUNEX SA. However, True Games is 2.66 times more volatile than SUNEX SA. It trades about 0.04 of its potential returns per unit of risk. SUNEX SA is currently generating about -0.08 per unit of risk. If you would invest 45.00 in True Games Syndicate on September 3, 2024 and sell it today you would earn a total of 2.00 from holding True Games Syndicate or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 92.86% |
| Values | Daily Returns |
True Games Syndicate vs. SUNEX SA
Performance |
| Timeline |
| True Games Syndicate |
| SUNEX SA |
True Games and SUNEX SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Games and SUNEX SA
The main advantage of trading using opposite True Games and SUNEX SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Games position performs unexpectedly, SUNEX 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 SUNEX SA will offset losses from the drop in SUNEX SA's long position.| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee SA |
| SUNEX SA vs. Pyramid Games SA | SUNEX SA vs. Gamedust SA | SUNEX SA vs. Quantum Software SA | SUNEX SA vs. True Games Syndicate |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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