Correlation Between 50247VAB5 and Take Two

Can any of the company-specific risk be diversified away by investing in both 50247VAB5 and Take Two 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 50247VAB5 and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LYB INTL FIN and Take Two Interactive Software, you can compare the effects of market volatilities on 50247VAB5 and Take Two 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 50247VAB5 with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of 50247VAB5 and Take Two.

Diversification Opportunities for 50247VAB5 and Take Two

-0.09

Correlation Coefficient

50247VAB5  Take Two

Good diversification

The 3 months correlation between 50247VAB5 and Take is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding LYB INTL FIN and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and 50247VAB5 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 LYB INTL FIN are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of 50247VAB5 i.e., 50247VAB5 and Take Two go up and down completely randomly.

Pair Corralation between 50247VAB5 and Take Two

Assuming the 90 days trading horizon 50247VAB5 is expected to generate 2.48 times less return on investment than Take Two. But when comparing it to its historical volatility, LYB INTL FIN is 1.98 times less risky than Take Two. It trades about 0.09 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  18,539  in Take Two Interactive Software on December 24, 2024 and sell it today you would earn a total of  2,808  from holding Take Two Interactive Software or generate 15.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.33%
Values	Daily Returns

LYB INTL FIN  vs.  Take Two Interactive Software

LYB INTL FIN

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LYB INTL FIN are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, 50247VAB5 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Take Two Interactive

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 8 (%) 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.

Pair Trading with 50247VAB5 and Take Two

The main advantage of trading using opposite 50247VAB5 and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 50247VAB5 position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.

The idea behind LYB INTL FIN and Take Two Interactive Software 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.