Correlation Between X Trade and True Games
Can any of the company-specific risk be diversified away by investing in both X Trade and True 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 X Trade and True Games 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 True Games Syndicate, you can compare the effects of market volatilities on X Trade and True 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 X Trade with a short position of True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and True Games.
Diversification Opportunities for X Trade and True Games
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTB and True is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and True Games Syndicate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Games Syndicate 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 True Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Games Syndicate has no effect on the direction of X Trade i.e., X Trade and True Games go up and down completely randomly.
Pair Corralation between X Trade and True Games
Assuming the 90 days trading horizon X Trade is expected to generate 1.07 times less return on investment than True Games. But when comparing it to its historical volatility, X Trade Brokers is 2.95 times less risky than True Games. It trades about 0.1 of its potential returns per unit of risk. True Games Syndicate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 43.00 in True Games Syndicate on November 8, 2024 and sell it today you would earn a total of 3.00 from holding True Games Syndicate or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.45% |
| Values | Daily Returns |
X Trade Brokers vs. True Games Syndicate
Performance |
| Timeline |
| X Trade Brokers |
| True Games Syndicate |
X Trade and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and True Games
The main advantage of trading using opposite X Trade and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, True 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 True Games will offset losses from the drop in True Games' long position.| X Trade vs. Santander Bank Polska | X Trade vs. Creativeforge Games SA | X Trade vs. True Games Syndicate | X Trade vs. Alior Bank SA |
| True Games vs. Clean Carbon Energy | True Games vs. Agroliga Group PLC | True Games vs. Vee SA | True Games vs. Novina 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |