Correlation Between TEN SQUARE and Intersport Polska

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

Diversification Opportunities for TEN SQUARE and Intersport Polska

-0.48

Correlation Coefficient

TEN SQUARE  Intersport Polska

Very good diversification

The 3 months correlation between TEN and Intersport is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Intersport Polska go up and down completely randomly.

Pair Corralation between TEN SQUARE and Intersport Polska

Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 0.43 times more return on investment than Intersport Polska. However, TEN SQUARE GAMES is 2.32 times less risky than Intersport Polska. It trades about 0.17 of its potential returns per unit of risk. Intersport Polska SA is currently generating about -0.11 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 Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TEN SQUARE GAMES  vs.  Intersport Polska 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 13 (%) 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.

Intersport Polska

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intersport Polska SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with TEN SQUARE and Intersport Polska

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

The idea behind TEN SQUARE GAMES and Intersport Polska 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.