Correlation Between Take-Two Interactive and PEEL MINING
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and PEEL MINING 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 PEEL MINING 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 PEEL MINING, you can compare the effects of market volatilities on Take-Two Interactive and PEEL MINING 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 PEEL MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and PEEL MINING.
Diversification Opportunities for Take-Two Interactive and PEEL MINING
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Take-Two and PEEL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and PEEL MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEEL MINING 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 PEEL MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEEL MINING has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and PEEL MINING go up and down completely randomly.
Pair Corralation between Take-Two Interactive and PEEL MINING
Assuming the 90 days horizon Take-Two Interactive is expected to generate 2.08 times less return on investment than PEEL MINING. But when comparing it to its historical volatility, Take Two Interactive Software is 3.34 times less risky than PEEL MINING. It trades about 0.06 of its potential returns per unit of risk. PEEL MINING is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.05 in PEEL MINING on September 14, 2024 and sell it today you would earn a total of 1.00 from holding PEEL MINING or generate 16.53% 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. PEEL MINING
Performance |
| Timeline |
| Take Two Interactive |
| PEEL MINING |
Take-Two Interactive and PEEL MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and PEEL MINING
The main advantage of trading using opposite Take-Two Interactive and PEEL MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, PEEL MINING 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 PEEL MINING will offset losses from the drop in PEEL MINING's long position.| Take-Two Interactive vs. NEXON Co | Take-Two Interactive vs. Superior Plus Corp | Take-Two Interactive vs. SIVERS SEMICONDUCTORS AB | Take-Two Interactive vs. Norsk Hydro ASA |
| PEEL MINING vs. ASURE SOFTWARE | PEEL MINING vs. Magic Software Enterprises | PEEL MINING vs. Take Two Interactive Software | PEEL MINING vs. Constellation 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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