Correlation Between Wielton SA and Baked Games
Can any of the company-specific risk be diversified away by investing in both Wielton SA and Baked Games 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 Wielton SA and Baked Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wielton SA and Baked Games SA, you can compare the effects of market volatilities on Wielton SA and Baked Games 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 Wielton SA with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wielton SA and Baked Games.
Diversification Opportunities for Wielton SA and Baked Games
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wielton and Baked is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wielton SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA and Wielton SA 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 Wielton SA are associated (or correlated) with Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Wielton SA i.e., Wielton SA and Baked Games go up and down completely randomly.
Pair Corralation between Wielton SA and Baked Games
Assuming the 90 days trading horizon Wielton SA is expected to generate 0.5 times more return on investment than Baked Games. However, Wielton SA is 2.02 times less risky than Baked Games. It trades about -0.08 of its potential returns per unit of risk. Baked Games SA is currently generating about -0.05 per unit of risk. If you would invest 870.00 in Wielton SA on September 12, 2024 and sell it today you would lose (333.00) from holding Wielton SA or give up 38.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.72% |
| Values | Daily Returns |
Wielton SA vs. Baked Games SA
Performance |
| Timeline |
| Wielton SA |
| Baked Games SA |
Wielton SA and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wielton SA and Baked Games
The main advantage of trading using opposite Wielton SA and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wielton SA position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Wielton SA vs. Baked Games SA | Wielton SA vs. Varsav Game Studios | Wielton SA vs. Mercator Medical SA | Wielton SA vs. Gaming Factory SA |
| Baked Games vs. Medicofarma Biotech SA | Baked Games vs. LSI Software SA | Baked Games vs. Quantum Software SA | Baked Games vs. New Tech Venture |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |