Correlation Between TROPHY GAMES and BankIn Bredygt

Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and BankIn Bredygt 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 TROPHY GAMES and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TROPHY GAMES Development and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on TROPHY GAMES and BankIn Bredygt 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 TROPHY GAMES with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and BankIn Bredygt.

Diversification Opportunities for TROPHY GAMES and BankIn Bredygt

-0.04

Correlation Coefficient

TROPHY GAMES  BankIn Bredygt

Good diversification

The 3 months correlation between TROPHY and BankIn is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES Development and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and TROPHY GAMES 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 TROPHY GAMES Development are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and BankIn Bredygt go up and down completely randomly.

Pair Corralation between TROPHY GAMES and BankIn Bredygt

Assuming the 90 days trading horizon TROPHY GAMES Development is expected to generate 2.88 times more return on investment than BankIn Bredygt. However, TROPHY GAMES is 2.88 times more volatile than BankIn Bredygt Klimaakt. It trades about 0.06 of its potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about -0.01 per unit of risk. If you would invest  454.00  in TROPHY GAMES Development on December 2, 2024 and sell it today you would earn a total of  226.00  from holding TROPHY GAMES Development or generate 49.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	61.38%
Values	Daily Returns

TROPHY GAMES Development  vs.  BankIn Bredygt Klimaakt

TROPHY GAMES Development

Risk-Adjusted Performance

Very Weak

Over the last 90 days TROPHY GAMES Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TROPHY GAMES is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankIn Bredygt Klimaakt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TROPHY GAMES and BankIn Bredygt

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

The idea behind TROPHY GAMES Development and BankIn Bredygt Klimaakt 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.