Top Line Correlations
| TOP Stock | 1.50 0.02 1.32% |
The correlation of Top Line is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Top Line Correlation With Market
Significant diversification
The correlation between Top Line Business and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Top Line Business and DJI in the same portfolio, assuming nothing else is changed.
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The ability to find closely correlated positions to Top Line could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Top Line when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Top Line - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Top Line Business to buy it.
Moving together with Top Stock
Moving against Top Stock
Related Correlations Analysis
Risk-Adjusted Indicators
There is a big difference between Top Stock performing well and Top Line Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Top Line's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SM | 0.95 | (0.02) | 0.00 | (0.77) | 0.00 | 2.54 | 6.94 | |||
| FB | 0.74 | 0.02 | (0.02) | 0.16 | 0.96 | 1.85 | 5.54 | |||
| AC | 1.77 | 0.37 | 0.16 | 0.84 | 1.72 | 3.62 | 7.94 | |||
| ALI | 1.62 | 0.07 | 0.02 | 0.24 | 1.85 | 3.56 | 9.42 | |||
| BDO | 1.77 | 0.11 | 0.01 | (0.15) | 2.01 | 4.08 | 10.64 | |||
| TEL | 1.00 | 0.30 | 0.24 | 12.87 | 0.52 | 3.03 | 7.83 | |||
| BPI | 1.62 | 0.23 | 0.08 | (0.97) | 1.78 | 3.16 | 16.35 | |||
| AEV | 1.67 | 0.28 | 0.10 | (0.89) | 1.72 | 3.70 | 6.74 |
Top Line Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Top Line stock to make a market-neutral strategy. Peer analysis of Top Line could also be used in its relative valuation, which is a method of valuing Top Line by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |