Correlation Between Take Two and Akeso,

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

By analyzing existing cross correlation between Take Two Interactive Software and Akeso, Inc, you can compare the effects of market volatilities on Take Two and Akeso, 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 Take Two with a short position of Akeso,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Akeso,.

Diversification Opportunities for Take Two and Akeso,

-0.11

Correlation Coefficient

Take Two  Akeso,

Good diversification

The 3 months correlation between Take and Akeso, is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Akeso, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akeso, Inc and Take Two 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 Take Two Interactive Software are associated (or correlated) with Akeso,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akeso, Inc has no effect on the direction of Take Two i.e., Take Two and Akeso, go up and down completely randomly.

Pair Corralation between Take Two and Akeso,

Given the investment horizon of 90 days Take Two is expected to generate 1.23 times less return on investment than Akeso,. But when comparing it to its historical volatility, Take Two Interactive Software is 2.51 times less risky than Akeso,. It trades about 0.08 of its potential returns per unit of risk. Akeso, Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  500.00  in Akeso, Inc on October 9, 2024 and sell it today you would earn a total of  225.00  from holding Akeso, Inc or generate 45.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	81.18%
Values	Daily Returns

Take Two Interactive Software  vs.  Akeso, Inc

Take Two Interactive

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Take Two displayed solid returns over the last few months and may actually be approaching a breakup point.

Akeso, Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akeso, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Take Two and Akeso,

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

The idea behind Take Two Interactive Software and Akeso, Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.