Correlation Between Take-Two Interactive and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and TROPHY GAMES 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 Interactive and TROPHY GAMES 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 TROPHY GAMES DEV, you can compare the effects of market volatilities on Take-Two Interactive and TROPHY GAMES 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 Interactive with a short position of TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and TROPHY GAMES.
Diversification Opportunities for Take-Two Interactive and TROPHY GAMES
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Take-Two and TROPHY is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV and Take-Two Interactive 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and TROPHY GAMES go up and down completely randomly.
Pair Corralation between Take-Two Interactive and TROPHY GAMES
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.53 times more return on investment than TROPHY GAMES. However, Take Two Interactive Software is 1.88 times less risky than TROPHY GAMES. It trades about 0.17 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about -0.06 per unit of risk. If you would invest 15,500 in Take Two Interactive Software on November 6, 2024 and sell it today you would earn a total of 2,498 from holding Take Two Interactive Software or generate 16.12% 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. TROPHY GAMES DEV
Performance |
| Timeline |
| Take Two Interactive |
| TROPHY GAMES DEV |
Take-Two Interactive and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and TROPHY GAMES
The main advantage of trading using opposite Take-Two Interactive and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| Take-Two Interactive vs. BlueScope Steel Limited | Take-Two Interactive vs. G III Apparel Group | Take-Two Interactive vs. MOUNT GIBSON IRON | Take-Two Interactive vs. HEMISPHERE EGY |
| TROPHY GAMES vs. GRIFFIN MINING LTD | TROPHY GAMES vs. FIREWEED METALS P | TROPHY GAMES vs. East Africa Metals | TROPHY GAMES vs. SIERRA METALS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |