Correlation Between Take Two and Global Ship
Can any of the company-specific risk be diversified away by investing in both Take Two and Global Ship 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 Take Two and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and Global Ship Lease, you can compare the effects of market volatilities on Take Two and Global Ship 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 Take Two with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Global Ship.
Diversification Opportunities for Take Two and Global Ship
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Take and Global is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Take Two 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 Take Two Interactive Software are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Take Two i.e., Take Two and Global Ship go up and down completely randomly.
Pair Corralation between Take Two and Global Ship
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 1.05 times more return on investment than Global Ship. However, Take Two is 1.05 times more volatile than Global Ship Lease. It trades about 0.08 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.05 per unit of risk. If you would invest 9,534 in Take Two Interactive Software on September 2, 2024 and sell it today you would earn a total of 8,364 from holding Take Two Interactive Software or generate 87.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Global Ship Lease
Performance |
| Timeline |
| Take Two Interactive |
| Global Ship Lease |
Take Two and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Global Ship
The main advantage of trading using opposite Take Two and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Take Two vs. Nintendo Co | Take Two vs. Sea Limited | Take Two vs. Superior Plus Corp | Take Two vs. NMI Holdings |
| Global Ship vs. Clarkson PLC | Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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