Correlation Between Telecom Plus and Take Two

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

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

Diversification Opportunities for Telecom Plus and Take Two

0.22

Correlation Coefficient

Telecom Plus  Take Two

Modest diversification

The 3 months correlation between Telecom and Take is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Plus PLC 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 Telecom Plus 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 Telecom Plus PLC 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 Telecom Plus i.e., Telecom Plus and Take Two go up and down completely randomly.

Pair Corralation between Telecom Plus and Take Two

Assuming the 90 days trading horizon Telecom Plus PLC is expected to under-perform the Take Two. In addition to that, Telecom Plus is 1.02 times more volatile than Take Two Interactive Software. It trades about -0.05 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about -0.01 per unit of volatility. If you would invest  23,610  in Take Two Interactive Software on May 20, 2025 and sell it today you would lose (381.00) from holding Take Two Interactive Software or give up 1.61% of portfolio value over 90 days.

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

Telecom Plus PLC  vs.  Take Two Interactive Software

Telecom Plus PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Telecom Plus PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Telecom Plus is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Take Two Interactive

Risk-Adjusted Performance

Weakest

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.

Pair Trading with Telecom Plus and Take Two

The main advantage of trading using opposite Telecom Plus and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Plus 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 Telecom Plus PLC 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.