Correlation Between CARSALES and Takkt AG
Can any of the company-specific risk be diversified away by investing in both CARSALES and Takkt AG 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 CARSALES and Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and Takkt AG, you can compare the effects of market volatilities on CARSALES and Takkt AG 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 CARSALES with a short position of Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALES and Takkt AG.
Diversification Opportunities for CARSALES and Takkt AG
Pay attention - limited upside
The 3 months correlation between CARSALES and Takkt is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG and CARSALES 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 CARSALESCOM are associated (or correlated) with Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of CARSALES i.e., CARSALES and Takkt AG go up and down completely randomly.
Pair Corralation between CARSALES and Takkt AG
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.79 times more return on investment than Takkt AG. However, CARSALESCOM is 1.26 times less risky than Takkt AG. It trades about 0.11 of its potential returns per unit of risk. Takkt AG is currently generating about -0.09 per unit of risk. If you would invest 1,692 in CARSALESCOM on September 4, 2024 and sell it today you would earn a total of 868.00 from holding CARSALESCOM or generate 51.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. Takkt AG
Performance |
| Timeline |
| CARSALESCOM |
| Takkt AG |
CARSALES and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALES and Takkt AG
The main advantage of trading using opposite CARSALES and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALES position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| CARSALES vs. Mitsui Chemicals | CARSALES vs. USWE SPORTS AB | CARSALES vs. PLAYTIKA HOLDING DL 01 | CARSALES vs. COVIVIO HOTELS INH |
| Takkt AG vs. Hyatt Hotels | Takkt AG vs. CARSALESCOM | Takkt AG vs. InterContinental Hotels Group | Takkt AG vs. CarsalesCom |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |