Correlation Between Grape King and TTET Union
Can any of the company-specific risk be diversified away by investing in both Grape King and TTET Union 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 Grape King and TTET Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grape King Bio and TTET Union Corp, you can compare the effects of market volatilities on Grape King and TTET Union 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 Grape King with a short position of TTET Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grape King and TTET Union.
Diversification Opportunities for Grape King and TTET Union
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grape and TTET is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Grape King Bio and TTET Union Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTET Union Corp and Grape King 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 Grape King Bio are associated (or correlated) with TTET Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTET Union Corp has no effect on the direction of Grape King i.e., Grape King and TTET Union go up and down completely randomly.
Pair Corralation between Grape King and TTET Union
Assuming the 90 days trading horizon Grape King is expected to generate 3.12 times less return on investment than TTET Union. But when comparing it to its historical volatility, Grape King Bio is 1.21 times less risky than TTET Union. It trades about 0.13 of its potential returns per unit of risk. TTET Union Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 14,600 in TTET Union Corp on November 28, 2024 and sell it today you would earn a total of 800.00 from holding TTET Union Corp or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grape King Bio vs. TTET Union Corp
Performance |
| Timeline |
| Grape King Bio |
| TTET Union Corp |
Grape King and TTET Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grape King and TTET Union
The main advantage of trading using opposite Grape King and TTET Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grape King position performs unexpectedly, TTET Union 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 TTET Union will offset losses from the drop in TTET Union's long position.| Grape King vs. Standard Foods Corp | Grape King vs. Eclat Textile Co | Grape King vs. Feng Tay Enterprises | Grape King vs. China Steel Chemical |
| TTET Union vs. Charoen Pokphand Enterprise | TTET Union vs. Standard Foods Corp | TTET Union vs. Uni President Enterprises Corp | TTET Union vs. Great Wall Enterprise |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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