Correlation Between Take Two and Mixi
Can any of the company-specific risk be diversified away by investing in both Take Two and Mixi 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 Mixi 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 Mixi Inc, you can compare the effects of market volatilities on Take Two and Mixi 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 Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Mixi.
Diversification Opportunities for Take Two and Mixi
Excellent diversification
The 3 months correlation between Take and Mixi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc 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 Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of Take Two i.e., Take Two and Mixi go up and down completely randomly.
Pair Corralation between Take Two and Mixi
Given the investment horizon of 90 days Take Two Interactive Software is expected to generate 2.78 times more return on investment than Mixi. However, Take Two is 2.78 times more volatile than Mixi Inc. It trades about 0.05 of its potential returns per unit of risk. Mixi Inc is currently generating about -0.05 per unit of risk. If you would invest 15,668 in Take Two Interactive Software on August 24, 2024 and sell it today you would earn a total of 2,990 from holding Take Two Interactive Software or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.24% |
| Values | Daily Returns |
Take Two Interactive Software vs. Mixi Inc
Performance |
| Timeline |
| Take Two Interactive |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Take Two and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Mixi
The main advantage of trading using opposite Take Two and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two position performs unexpectedly, Mixi 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 Mixi will offset losses from the drop in Mixi's long position.| Take Two vs. Nintendo Co ADR | Take Two vs. NetEase | Take Two vs. Playtika Holding Corp | Take Two vs. Electronic Arts |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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