Correlation Between Take Two and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both Take Two and Aurubis AG 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 Aurubis AG 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 Aurubis AG, you can compare the effects of market volatilities on Take Two and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Aurubis AG.
Diversification Opportunities for Take Two and Aurubis AG
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Take and Aurubis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of Take Two i.e., Take Two and Aurubis AG go up and down completely randomly.
Pair Corralation between Take Two and Aurubis AG
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.91 times more return on investment than Aurubis AG. However, Take Two Interactive Software is 1.09 times less risky than Aurubis AG. It trades about 0.09 of its potential returns per unit of risk. Aurubis AG is currently generating about -0.12 per unit of risk. If you would invest 17,512 in Take Two Interactive Software on October 24, 2024 and sell it today you would earn a total of 366.00 from holding Take Two Interactive Software or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Aurubis AG
Performance |
| Timeline |
| Take Two Interactive |
| Aurubis AG |
Take Two and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Aurubis AG
The main advantage of trading using opposite Take Two and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.| Take Two vs. AECOM TECHNOLOGY | Take Two vs. CLOVER HEALTH INV | Take Two vs. SMA Solar Technology | Take Two vs. Kingdee International Software |
| Aurubis AG vs. Calibre Mining Corp | Aurubis AG vs. Global Ship Lease | Aurubis AG vs. Stag Industrial | Aurubis AG vs. Lendlease Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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