Correlation Between Wicket Gaming and Truist Financial

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

By analyzing existing cross correlation between Wicket Gaming AB and Truist Financial, you can compare the effects of market volatilities on Wicket Gaming and Truist Financial 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 Wicket Gaming with a short position of Truist Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and Truist Financial.

Diversification Opportunities for Wicket Gaming and Truist Financial

0.0

Correlation Coefficient

Wicket Gaming  Truist Financial

Pay attention - limited upside

The 3 months correlation between Wicket and Truist is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB and Truist Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truist Financial and Wicket Gaming 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 Wicket Gaming AB are associated (or correlated) with Truist Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truist Financial has no effect on the direction of Wicket Gaming i.e., Wicket Gaming and Truist Financial go up and down completely randomly.

Pair Corralation between Wicket Gaming and Truist Financial

If you would invest  10.00  in Wicket Gaming AB on February 4, 2024 and sell it today you would earn a total of  0.20  from holding Wicket Gaming AB or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Wicket Gaming AB  vs.  Truist Financial

Wicket Gaming AB

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wicket Gaming AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Wicket Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Truist Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Truist Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Truist Financial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Wicket Gaming and Truist Financial

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

The idea behind Wicket Gaming AB and Truist Financial 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..