Correlation Between TEN SQUARE and Esotiq Henderson

Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Esotiq Henderson 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 Esotiq Henderson 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 Esotiq Henderson SA, you can compare the effects of market volatilities on TEN SQUARE and Esotiq Henderson 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 Esotiq Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Esotiq Henderson.

Diversification Opportunities for TEN SQUARE and Esotiq Henderson

-0.52

Correlation Coefficient

TEN SQUARE  Esotiq Henderson

Excellent diversification

The 3 months correlation between TEN and Esotiq is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Esotiq Henderson SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esotiq Henderson 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 Esotiq Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esotiq Henderson has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Esotiq Henderson go up and down completely randomly.

Pair Corralation between TEN SQUARE and Esotiq Henderson

Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 1.33 times more return on investment than Esotiq Henderson. However, TEN SQUARE is 1.33 times more volatile than Esotiq Henderson SA. It trades about 0.14 of its potential returns per unit of risk. Esotiq Henderson SA is currently generating about -0.1 per unit of risk. If you would invest  7,180  in TEN SQUARE GAMES on December 22, 2024 and sell it today you would earn a total of  1,160  from holding TEN SQUARE GAMES or generate 16.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TEN SQUARE GAMES  vs.  Esotiq Henderson SA

TEN SQUARE GAMES

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TEN SQUARE GAMES are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, TEN SQUARE reported solid returns over the last few months and may actually be approaching a breakup point.

Esotiq Henderson

Risk-Adjusted Performance

Very Weak

Over the last 90 days Esotiq Henderson SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with TEN SQUARE and Esotiq Henderson

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

The idea behind TEN SQUARE GAMES and Esotiq Henderson 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 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.