Correlation Between Turvo International and Golden Friends
Can any of the company-specific risk be diversified away by investing in both Turvo International and Golden Friends 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 Turvo International and Golden Friends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turvo International Co and Golden Friends, you can compare the effects of market volatilities on Turvo International and Golden Friends 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 Turvo International with a short position of Golden Friends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turvo International and Golden Friends.
Diversification Opportunities for Turvo International and Golden Friends
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turvo and Golden is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Turvo International Co and Golden Friends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Friends and Turvo International 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 Turvo International Co are associated (or correlated) with Golden Friends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Friends has no effect on the direction of Turvo International i.e., Turvo International and Golden Friends go up and down completely randomly.
Pair Corralation between Turvo International and Golden Friends
Assuming the 90 days trading horizon Turvo International Co is expected to generate 7.28 times more return on investment than Golden Friends. However, Turvo International is 7.28 times more volatile than Golden Friends. It trades about 0.11 of its potential returns per unit of risk. Golden Friends is currently generating about -0.19 per unit of risk. If you would invest 16,050 in Turvo International Co on September 2, 2024 and sell it today you would earn a total of 1,400 from holding Turvo International Co or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turvo International Co vs. Golden Friends
Performance |
| Timeline |
| Turvo International |
| Golden Friends |
Turvo International and Golden Friends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turvo International and Golden Friends
The main advantage of trading using opposite Turvo International and Golden Friends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turvo International position performs unexpectedly, Golden Friends 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 Golden Friends will offset losses from the drop in Golden Friends' long position.| Turvo International vs. Greatek Electronics | Turvo International vs. Elan Microelectronics Corp | Turvo International vs. Sigurd Microelectronics Corp | Turvo International vs. Hota Industrial Mfg |
| Golden Friends vs. Charoen Pokphand Enterprise | Golden Friends vs. Taiwan Sakura Corp | Golden Friends vs. Great Wall Enterprise | Golden Friends vs. TTET Union Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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