Correlation Between Take-Two Interactive and TELE2 -B-
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and TELE2 -B- 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 TELE2 -B- 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 TELE2 B , you can compare the effects of market volatilities on Take-Two Interactive and TELE2 -B- 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 TELE2 -B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and TELE2 -B-.
Diversification Opportunities for Take-Two Interactive and TELE2 -B-
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Take-Two and TELE2 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and TELE2 B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 -B- 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 TELE2 -B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 -B- has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and TELE2 -B- go up and down completely randomly.
Pair Corralation between Take-Two Interactive and TELE2 -B-
Assuming the 90 days horizon Take-Two Interactive is expected to generate 3.84 times less return on investment than TELE2 -B-. But when comparing it to its historical volatility, Take Two Interactive Software is 3.06 times less risky than TELE2 -B-. It trades about 0.08 of its potential returns per unit of risk. TELE2 B is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 115.00 in TELE2 B on October 13, 2024 and sell it today you would earn a total of 811.00 from holding TELE2 B or generate 705.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. TELE2 B
Performance |
| Timeline |
| Take Two Interactive |
| TELE2 -B- |
Take-Two Interactive and TELE2 -B- Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and TELE2 -B-
The main advantage of trading using opposite Take-Two Interactive and TELE2 -B- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, TELE2 -B- 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 TELE2 -B- will offset losses from the drop in TELE2 -B-'s long position.| Take-Two Interactive vs. JAPAN AIRLINES | Take-Two Interactive vs. ETFS Coffee ETC | Take-Two Interactive vs. China Eastern Airlines | Take-Two Interactive vs. Gol Intelligent Airlines |
| TELE2 -B- vs. Caseys General Stores | TELE2 -B- vs. BURLINGTON STORES | TELE2 -B- vs. COSTCO WHOLESALE CDR | TELE2 -B- vs. Retail Estates NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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