Correlation Between TEN SQUARE and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Creotech Instruments 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 TEN SQUARE and Creotech Instruments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Creotech Instruments SA, you can compare the effects of market volatilities on TEN SQUARE and Creotech Instruments 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 TEN SQUARE with a short position of Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Creotech Instruments.
Diversification Opportunities for TEN SQUARE and Creotech Instruments
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TEN and Creotech is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Creotech Instruments go up and down completely randomly.
Pair Corralation between TEN SQUARE and Creotech Instruments
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 0.84 times more return on investment than Creotech Instruments. However, TEN SQUARE GAMES is 1.19 times less risky than Creotech Instruments. It trades about 0.17 of its potential returns per unit of risk. Creotech Instruments SA is currently generating about 0.13 per unit of risk. If you would invest 7,200 in TEN SQUARE GAMES on December 30, 2024 and sell it today you would earn a total of 1,740 from holding TEN SQUARE GAMES or generate 24.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
TEN SQUARE GAMES vs. Creotech Instruments SA
Performance |
Timeline |
TEN SQUARE GAMES |
Creotech Instruments |
TEN SQUARE and Creotech Instruments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TEN SQUARE and Creotech Instruments
The main advantage of trading using opposite TEN SQUARE and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.TEN SQUARE vs. Inter Cars SA | TEN SQUARE vs. Fintech SA | TEN SQUARE vs. mBank SA | TEN SQUARE vs. Creotech Instruments SA |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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