Correlation Between X Trade and Drago Entertainment
Can any of the company-specific risk be diversified away by investing in both X Trade and Drago Entertainment 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 X Trade and Drago Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and Drago entertainment SA, you can compare the effects of market volatilities on X Trade and Drago Entertainment 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 X Trade with a short position of Drago Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Drago Entertainment.
Diversification Opportunities for X Trade and Drago Entertainment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between XTB and Drago is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Drago entertainment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drago entertainment and X Trade 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 X Trade Brokers are associated (or correlated) with Drago Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drago entertainment has no effect on the direction of X Trade i.e., X Trade and Drago Entertainment go up and down completely randomly.
Pair Corralation between X Trade and Drago Entertainment
Assuming the 90 days trading horizon X Trade is expected to generate 1.09 times less return on investment than Drago Entertainment. But when comparing it to its historical volatility, X Trade Brokers is 1.1 times less risky than Drago Entertainment. It trades about 0.27 of its potential returns per unit of risk. Drago entertainment SA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,925 in Drago entertainment SA on October 25, 2024 and sell it today you would earn a total of 205.00 from holding Drago entertainment SA or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Trade Brokers vs. Drago entertainment SA
Performance |
| Timeline |
| X Trade Brokers |
| Drago entertainment |
X Trade and Drago Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and Drago Entertainment
The main advantage of trading using opposite X Trade and Drago Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Drago Entertainment 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 Drago Entertainment will offset losses from the drop in Drago Entertainment's long position.| X Trade vs. Movie Games SA | X Trade vs. Play2Chill SA | X Trade vs. SOFTWARE MANSION SPOLKA | X Trade vs. PZ Cormay SA |
| Drago Entertainment vs. Monnari Trade SA | Drago Entertainment vs. ING Bank lski | Drago Entertainment vs. X Trade Brokers | Drago Entertainment vs. mBank SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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