Correlation Between 2G ENERGY and TESCO PLC
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and TESCO PLC 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 2G ENERGY and TESCO PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and TESCO PLC LS 0633333, you can compare the effects of market volatilities on 2G ENERGY and TESCO PLC 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 2G ENERGY with a short position of TESCO PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and TESCO PLC.
Diversification Opportunities for 2G ENERGY and TESCO PLC
Very good diversification
The 3 months correlation between 2GB and TESCO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and TESCO PLC LS 0633333 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TESCO PLC LS and 2G ENERGY 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 2G ENERGY are associated (or correlated) with TESCO PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TESCO PLC LS has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and TESCO PLC go up and down completely randomly.
Pair Corralation between 2G ENERGY and TESCO PLC
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the TESCO PLC. In addition to that, 2G ENERGY is 2.07 times more volatile than TESCO PLC LS 0633333. It trades about -0.06 of its total potential returns per unit of risk. TESCO PLC LS 0633333 is currently generating about 0.01 per unit of volatility. If you would invest 422.00 in TESCO PLC LS 0633333 on August 29, 2024 and sell it today you would earn a total of 0.00 from holding TESCO PLC LS 0633333 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2G ENERGY vs. TESCO PLC LS 0633333
Performance |
| Timeline |
| 2G ENERGY |
| TESCO PLC LS |
2G ENERGY and TESCO PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and TESCO PLC
The main advantage of trading using opposite 2G ENERGY and TESCO PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, TESCO PLC 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 TESCO PLC will offset losses from the drop in TESCO PLC's long position.| 2G ENERGY vs. FISH PAYK HEALTH | 2G ENERGY vs. GREENX METALS LTD | 2G ENERGY vs. Lion One Metals | 2G ENERGY vs. Zijin Mining Group |
| TESCO PLC vs. UMC Electronics Co | TESCO PLC vs. LG Electronics | TESCO PLC vs. KIMBALL ELECTRONICS | TESCO PLC vs. HEALTHCARE REAL A |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |