Correlation Between Trade Desk and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Trade Desk and TRADEGATE 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 Trade Desk and TRADEGATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Trade Desk and TRADEGATE, you can compare the effects of market volatilities on Trade Desk and TRADEGATE 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 Trade Desk with a short position of TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and TRADEGATE.
Diversification Opportunities for Trade Desk and TRADEGATE
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trade and TRADEGATE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Trade Desk and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE and Trade Desk 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 The Trade Desk are associated (or correlated) with TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Trade Desk i.e., Trade Desk and TRADEGATE go up and down completely randomly.
Pair Corralation between Trade Desk and TRADEGATE
Assuming the 90 days trading horizon The Trade Desk is expected to generate 3.12 times more return on investment than TRADEGATE. However, Trade Desk is 3.12 times more volatile than TRADEGATE. It trades about 0.06 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.04 per unit of risk. If you would invest 6,920 in The Trade Desk on September 1, 2024 and sell it today you would earn a total of 5,180 from holding The Trade Desk or generate 74.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Trade Desk vs. TRADEGATE
Performance |
| Timeline |
| Trade Desk |
| TRADEGATE |
Trade Desk and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Desk and TRADEGATE
The main advantage of trading using opposite Trade Desk and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Desk position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| Trade Desk vs. NORWEGIAN AIR SHUT | Trade Desk vs. Harmony Gold Mining | Trade Desk vs. GALENA MINING LTD | Trade Desk vs. ONWARD MEDICAL BV |
| TRADEGATE vs. SIVERS SEMICONDUCTORS AB | TRADEGATE vs. Darden Restaurants | TRADEGATE vs. Reliance Steel Aluminum | TRADEGATE vs. Q2M Managementberatung AG |
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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