Correlation Between Take-Two Interactive and H M
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By analyzing existing cross correlation between Take Two Interactive Software and H M Hennes, you can compare the effects of market volatilities on Take-Two Interactive and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and H M.
Diversification Opportunities for Take-Two Interactive and H M
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Take-Two and HMSB is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and H M go up and down completely randomly.
Pair Corralation between Take-Two Interactive and H M
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.56 times more return on investment than H M. However, Take Two Interactive Software is 1.78 times less risky than H M. It trades about 0.03 of its potential returns per unit of risk. H M Hennes is currently generating about -0.24 per unit of risk. If you would invest 17,594 in Take Two Interactive Software on October 11, 2024 and sell it today you would earn a total of 110.00 from holding Take Two Interactive Software or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. H M Hennes
Performance |
| Timeline |
| Take Two Interactive |
| H M Hennes |
Take-Two Interactive and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and H M
The main advantage of trading using opposite Take-Two Interactive and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| Take-Two Interactive vs. VARIOUS EATERIES LS | Take-Two Interactive vs. GREENX METALS LTD | Take-Two Interactive vs. Luckin Coffee | Take-Two Interactive vs. TITAN MACHINERY |
| H M vs. AXWAY SOFTWARE EO | H M vs. Kingdee International Software | H M vs. Singapore Telecommunications Limited | H M vs. Take Two Interactive Software |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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