Correlation Between Take Two and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Take Two and Kodiak Copper 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 Kodiak Copper 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 Kodiak Copper Corp, you can compare the effects of market volatilities on Take Two and Kodiak Copper 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 Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Kodiak Copper.
Diversification Opportunities for Take Two and Kodiak Copper
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Take and Kodiak is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp 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 Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Take Two i.e., Take Two and Kodiak Copper go up and down completely randomly.
Pair Corralation between Take Two and Kodiak Copper
Given the investment horizon of 90 days Take Two Interactive Software is expected to generate 0.4 times more return on investment than Kodiak Copper. However, Take Two Interactive Software is 2.51 times less risky than Kodiak Copper. It trades about 0.08 of its potential returns per unit of risk. Kodiak Copper Corp is currently generating about -0.03 per unit of risk. If you would invest 10,206 in Take Two Interactive Software on August 30, 2024 and sell it today you would earn a total of 8,350 from holding Take Two Interactive Software or generate 81.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Kodiak Copper Corp
Performance |
| Timeline |
| Take Two Interactive |
| Kodiak Copper Corp |
Take Two and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Kodiak Copper
The main advantage of trading using opposite Take Two and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Take Two vs. Nintendo Co ADR | Take Two vs. NetEase | Take Two vs. Playtika Holding Corp | Take Two vs. Electronic Arts |
| Kodiak Copper vs. Silver Tiger Metals | Kodiak Copper vs. P2 Gold | Kodiak Copper vs. Integra Resources Corp | Kodiak Copper vs. SilverCrest Metals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |