Correlation Between True Games and X Trade
Can any of the company-specific risk be diversified away by investing in both True Games and X Trade 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 X Trade 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 X Trade Brokers, you can compare the effects of market volatilities on True Games and X Trade 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 X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Games and X Trade.
Diversification Opportunities for True Games and X Trade
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between True and XTB is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding True Games Syndicate and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of True Games i.e., True Games and X Trade go up and down completely randomly.
Pair Corralation between True Games and X Trade
Assuming the 90 days trading horizon True Games Syndicate is expected to under-perform the X Trade. In addition to that, True Games is 2.02 times more volatile than X Trade Brokers. It trades about -0.18 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.24 per unit of volatility. If you would invest 6,562 in X Trade Brokers on August 28, 2024 and sell it today you would earn a total of 518.00 from holding X Trade Brokers or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
True Games Syndicate vs. X Trade Brokers
Performance |
| Timeline |
| True Games Syndicate |
| X Trade Brokers |
True Games and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Games and X Trade
The main advantage of trading using opposite True Games and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Games position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |