Correlation Between Take Two and Fiinu PLC

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

Diversification Opportunities for Take Two and Fiinu PLC

0.22

Correlation Coefficient

Take Two  Fiinu PLC

Modest diversification

The 3 months correlation between Take and Fiinu is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Fiinu PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiinu PLC 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 Fiinu PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiinu PLC has no effect on the direction of Take Two i.e., Take Two and Fiinu PLC go up and down completely randomly.

Pair Corralation between Take Two and Fiinu PLC

Assuming the 90 days trading horizon Take Two Interactive Software is expected to under-perform the Fiinu PLC. But the stock apears to be less risky and, when comparing its historical volatility, Take Two Interactive Software is 3.33 times less risky than Fiinu PLC. The stock trades about -0.04 of its potential returns per unit of risk. The Fiinu PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  713.00  in Fiinu PLC on May 6, 2025 and sell it today you would earn a total of  162.00  from holding Fiinu PLC or generate 22.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Take Two Interactive Software  vs.  Fiinu PLC

Take Two Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Take Two Interactive Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Take Two is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Fiinu PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fiinu PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fiinu PLC unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Take Two and Fiinu PLC

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

The idea behind Take Two Interactive Software and Fiinu PLC 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.