Correlation Between Take-Two Interactive and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Take-Two Interactive and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and Jacquet Metal.
Diversification Opportunities for Take-Two Interactive and Jacquet Metal
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Take-Two and Jacquet is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and Jacquet Metal go up and down completely randomly.
Pair Corralation between Take-Two Interactive and Jacquet Metal
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 1.02 times more return on investment than Jacquet Metal. However, Take-Two Interactive is 1.02 times more volatile than Jacquet Metal Service. It trades about 0.07 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.0 per unit of risk. If you would invest 10,758 in Take Two Interactive Software on November 7, 2024 and sell it today you would earn a total of 6,936 from holding Take Two Interactive Software or generate 64.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Jacquet Metal Service
Performance |
| Timeline |
| Take Two Interactive |
| Jacquet Metal Service |
Take-Two Interactive and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and Jacquet Metal
The main advantage of trading using opposite Take-Two Interactive and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal'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 |
| Jacquet Metal vs. CARSALESCOM | Jacquet Metal vs. Easy Software AG | Jacquet Metal vs. Zoom Video Communications | Jacquet Metal vs. CarsalesCom |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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