Correlation Between Take-Two Interactive and G5 Entertainment

Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and G5 Entertainment 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 Interactive and G5 Entertainment 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 G5 Entertainment AB, you can compare the effects of market volatilities on Take-Two Interactive and G5 Entertainment 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 Interactive with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and G5 Entertainment.

Diversification Opportunities for Take-Two Interactive and G5 Entertainment

-0.52

Correlation Coefficient

Take-Two Interactive  G5 Entertainment

Excellent diversification

The 3 months correlation between Take-Two and U3I is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment and Take-Two Interactive 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and G5 Entertainment go up and down completely randomly.

Pair Corralation between Take-Two Interactive and G5 Entertainment

Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.78 times more return on investment than G5 Entertainment. However, Take Two Interactive Software is 1.28 times less risky than G5 Entertainment. It trades about 0.1 of its potential returns per unit of risk. G5 Entertainment AB is currently generating about -0.1 per unit of risk. If you would invest  19,938  in Take Two Interactive Software on July 17, 2025 and sell it today you would earn a total of  1,947  from holding Take Two Interactive Software or generate 9.77% return on investment over 90 days.

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

Take Two Interactive Software  vs.  G5 Entertainment AB

Take Two Interactive

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Take-Two Interactive may actually be approaching a critical reversion point that can send shares even higher in November 2025.

G5 Entertainment

Risk-Adjusted Performance

Weakest

Over the last 90 days G5 Entertainment AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Take-Two Interactive and G5 Entertainment

The main advantage of trading using opposite Take-Two Interactive and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.

The idea behind Take Two Interactive Software and G5 Entertainment AB 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..