Correlation Between TJX Cos and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both TJX Cos and AfriTin Mining 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 TJX Cos and AfriTin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TJX Cos and AfriTin Mining, you can compare the effects of market volatilities on TJX Cos and AfriTin Mining 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 TJX Cos with a short position of AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJX Cos and AfriTin Mining.
Diversification Opportunities for TJX Cos and AfriTin Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TJX and AfriTin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TJX Cos and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining and TJX Cos 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 TJX Cos are associated (or correlated) with AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of TJX Cos i.e., TJX Cos and AfriTin Mining go up and down completely randomly.
Pair Corralation between TJX Cos and AfriTin Mining
Assuming the 90 days trading horizon TJX Cos is expected to generate 2.29 times more return on investment than AfriTin Mining. However, TJX Cos is 2.29 times more volatile than AfriTin Mining. It trades about 0.05 of its potential returns per unit of risk. AfriTin Mining is currently generating about -0.07 per unit of risk. If you would invest 8,943 in TJX Cos on September 4, 2024 and sell it today you would earn a total of 3,709 from holding TJX Cos or generate 41.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
TJX Cos vs. AfriTin Mining
Performance |
| Timeline |
| TJX Cos |
| AfriTin Mining |
TJX Cos and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJX Cos and AfriTin Mining
The main advantage of trading using opposite TJX Cos and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJX Cos position performs unexpectedly, AfriTin Mining 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| TJX Cos vs. Samsung Electronics Co | TJX Cos vs. Samsung Electronics Co | TJX Cos vs. Hyundai Motor | TJX Cos vs. Toyota Motor Corp |
| AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Atalaya Mining | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Amaroq Minerals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |