Correlation Between IMC SA and Detalion Games

Can any of the company-specific risk be diversified away by investing in both IMC SA and Detalion 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 IMC SA and Detalion Games into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IMC SA and Detalion Games SA, you can compare the effects of market volatilities on IMC SA and Detalion 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 IMC SA with a short position of Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMC SA and Detalion Games.

Diversification Opportunities for IMC SA and Detalion Games

0.0

Correlation Coefficient

IMC SA  Detalion Games

Pay attention - limited upside

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

Pair Corralation between IMC SA and Detalion Games

If you would invest  91.00  in Detalion Games SA on December 30, 2024 and sell it today you would earn a total of  19.00  from holding Detalion Games SA or generate 20.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IMC SA  vs.  Detalion Games SA

IMC SA

Risk-Adjusted Performance

Solid

Over the last 90 days IMC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IMC SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Detalion Games SA

Risk-Adjusted Performance

OK

Over the last 90 days Detalion Games SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Detalion Games reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IMC SA and Detalion Games

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

The idea behind IMC SA and Detalion Games SA 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.