Correlation Between Take Two and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both Take Two and Canadian Natural 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 Canadian Natural 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 Canadian Natural Resources, you can compare the effects of market volatilities on Take Two and Canadian Natural 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 Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Canadian Natural.
Diversification Opportunities for Take Two and Canadian Natural
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Take and Canadian is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res 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 Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of Take Two i.e., Take Two and Canadian Natural go up and down completely randomly.
Pair Corralation between Take Two and Canadian Natural
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.9 times more return on investment than Canadian Natural. However, Take Two Interactive Software is 1.12 times less risky than Canadian Natural. It trades about 0.18 of its potential returns per unit of risk. Canadian Natural Resources is currently generating about -0.03 per unit of risk. If you would invest 14,992 in Take Two Interactive Software on October 29, 2024 and sell it today you would earn a total of 2,530 from holding Take Two Interactive Software or generate 16.88% 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. Canadian Natural Resources
Performance |
| Timeline |
| Take Two Interactive |
| Canadian Natural Res |
Take Two and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Canadian Natural
The main advantage of trading using opposite Take Two and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| Take Two vs. BioNTech SE | Take Two vs. Allegheny Technologies Incorporated | Take Two vs. NorAm Drilling AS | Take Two vs. ASPEN TECHINC DL |
| Canadian Natural vs. CNVISION MEDIA | Canadian Natural vs. DISTRICT METALS | Canadian Natural vs. Prosiebensat 1 Media | Canadian Natural vs. GREENX METALS LTD |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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