Correlation Between Stic Investments and T3 Entertainment

Can any of the company-specific risk be diversified away by investing in both Stic Investments and T3 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 Stic Investments and T3 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stic Investments and T3 Entertainment Co, you can compare the effects of market volatilities on Stic Investments and T3 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 Stic Investments with a short position of T3 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and T3 Entertainment.

Diversification Opportunities for Stic Investments and T3 Entertainment

0.65

Correlation Coefficient

Stic Investments  T3 Entertainment

Poor diversification

The 3 months correlation between Stic and 204610 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and T3 Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T3 Entertainment and Stic Investments 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 Stic Investments are associated (or correlated) with T3 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T3 Entertainment has no effect on the direction of Stic Investments i.e., Stic Investments and T3 Entertainment go up and down completely randomly.

Pair Corralation between Stic Investments and T3 Entertainment

Assuming the 90 days trading horizon Stic Investments is expected to generate 0.85 times more return on investment than T3 Entertainment. However, Stic Investments is 1.18 times less risky than T3 Entertainment. It trades about 0.3 of its potential returns per unit of risk. T3 Entertainment Co is currently generating about 0.12 per unit of risk. If you would invest  757,000  in Stic Investments on September 20, 2024 and sell it today you would earn a total of  104,000  from holding Stic Investments or generate 13.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Stic Investments  vs.  T3 Entertainment Co

Stic Investments

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stic Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Stic Investments may actually be approaching a critical reversion point that can send shares even higher in January 2025.

T3 Entertainment

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in T3 Entertainment Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, T3 Entertainment sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stic Investments and T3 Entertainment

The main advantage of trading using opposite Stic Investments and T3 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, T3 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 T3 Entertainment will offset losses from the drop in T3 Entertainment's long position.

The idea behind Stic Investments and T3 Entertainment Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.