Correlation Between Grand Vision and Take Two

Can any of the company-specific risk be diversified away by investing in both Grand Vision and Take Two 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 Grand Vision and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Vision Media and Take Two Interactive Software, you can compare the effects of market volatilities on Grand Vision and Take Two 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 Grand Vision with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and Take Two.

Diversification Opportunities for Grand Vision and Take Two

0.0

Correlation Coefficient

Grand Vision  Take Two

Pay attention - limited upside

The 3 months correlation between Grand and Take is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and Grand Vision 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 Grand Vision Media are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Grand Vision i.e., Grand Vision and Take Two go up and down completely randomly.

Pair Corralation between Grand Vision and Take Two

Assuming the 90 days trading horizon Grand Vision Media is expected to under-perform the Take Two. In addition to that, Grand Vision is 1.91 times more volatile than Take Two Interactive Software. It trades about -0.03 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.08 per unit of volatility. If you would invest  10,238  in Take Two Interactive Software on October 10, 2024 and sell it today you would earn a total of  7,976  from holding Take Two Interactive Software or generate 77.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.0%
Values	Daily Returns

Grand Vision Media  vs.  Take Two Interactive Software

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grand Vision is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Take Two Interactive

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Take Two unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grand Vision and Take Two

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

The idea behind Grand Vision Media and Take Two Interactive Software 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.