Correlation Between ATRESMEDIA and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and TROPHY 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 ATRESMEDIA and TROPHY GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and TROPHY GAMES DEV, you can compare the effects of market volatilities on ATRESMEDIA and TROPHY 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 ATRESMEDIA with a short position of TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and TROPHY GAMES.
Diversification Opportunities for ATRESMEDIA and TROPHY GAMES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATRESMEDIA and TROPHY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV and ATRESMEDIA 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 ATRESMEDIA are associated (or correlated) with TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and TROPHY GAMES go up and down completely randomly.
Pair Corralation between ATRESMEDIA and TROPHY GAMES
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 1.92 times less return on investment than TROPHY GAMES. But when comparing it to its historical volatility, ATRESMEDIA is 2.44 times less risky than TROPHY GAMES. It trades about 0.1 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 53.00 in TROPHY GAMES DEV on September 12, 2024 and sell it today you would earn a total of 39.00 from holding TROPHY GAMES DEV or generate 73.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. TROPHY GAMES DEV
Performance |
| Timeline |
| ATRESMEDIA |
| TROPHY GAMES DEV |
ATRESMEDIA and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and TROPHY GAMES
The main advantage of trading using opposite ATRESMEDIA and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, TROPHY 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| ATRESMEDIA vs. Insurance Australia Group | ATRESMEDIA vs. MSAD INSURANCE | ATRESMEDIA vs. Haier Smart Home | ATRESMEDIA vs. Singapore Reinsurance |
| TROPHY GAMES vs. BLUESCOPE STEEL | TROPHY GAMES vs. Science Applications International | TROPHY GAMES vs. RELIANCE STEEL AL | TROPHY GAMES vs. Nippon Steel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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