Correlation Between Ita Unibanco and Take Two

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

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

Diversification Opportunities for Ita Unibanco and Take Two

0.78

Correlation Coefficient

Ita Unibanco  Take Two

Poor diversification

The 3 months correlation between Ita and Take is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ita Unibanco Holding 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 Ita Unibanco 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 Ita Unibanco Holding 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 Ita Unibanco i.e., Ita Unibanco and Take Two go up and down completely randomly.

Pair Corralation between Ita Unibanco and Take Two

Assuming the 90 days trading horizon Ita Unibanco Holding is expected to generate 0.61 times more return on investment than Take Two. However, Ita Unibanco Holding is 1.64 times less risky than Take Two. It trades about 0.32 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.06 per unit of risk. If you would invest  2,641  in Ita Unibanco Holding on February 21, 2025 and sell it today you would earn a total of  697.00  from holding Ita Unibanco Holding or generate 26.39% return on investment over 90 days.

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

Ita Unibanco Holding  vs.  Take Two Interactive Software

Ita Unibanco Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ita Unibanco Holding are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ita Unibanco unveiled solid returns over the last few months and may actually be approaching a breakup point.

Take Two Interactive

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Take Two may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Ita Unibanco and Take Two

The main advantage of trading using opposite Ita Unibanco and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ita Unibanco 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 Ita Unibanco Holding 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.