Correlation Between Take-Two Interactive and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and CDN IMPERIAL 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 CDN IMPERIAL 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 CDN IMPERIAL BANK, you can compare the effects of market volatilities on Take-Two Interactive and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and CDN IMPERIAL.
Diversification Opportunities for Take-Two Interactive and CDN IMPERIAL
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Take-Two and CDN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between Take-Two Interactive and CDN IMPERIAL
Assuming the 90 days horizon Take-Two Interactive is expected to generate 1.0 times less return on investment than CDN IMPERIAL. But when comparing it to its historical volatility, Take Two Interactive Software is 1.23 times less risky than CDN IMPERIAL. It trades about 0.24 of its potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,081 in CDN IMPERIAL BANK on September 12, 2024 and sell it today you would earn a total of 312.00 from holding CDN IMPERIAL BANK or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Take Two Interactive Software vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| Take Two Interactive |
| CDN IMPERIAL BANK |
Take-Two Interactive and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and CDN IMPERIAL
The main advantage of trading using opposite Take-Two Interactive and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| Take-Two Interactive vs. NEXON Co | Take-Two Interactive vs. Superior Plus Corp | Take-Two Interactive vs. SIVERS SEMICONDUCTORS AB | Take-Two Interactive vs. Norsk Hydro ASA |
| CDN IMPERIAL vs. JD SPORTS FASH | CDN IMPERIAL vs. KRAKATAU STEEL B | CDN IMPERIAL vs. BlueScope Steel Limited | CDN IMPERIAL vs. MITSUBISHI STEEL MFG |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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