Correlation Between Teradata Corp and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Teradata Corp and FEMALE HEALTH 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 Teradata Corp and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teradata Corp and FEMALE HEALTH, you can compare the effects of market volatilities on Teradata Corp and FEMALE HEALTH 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 Teradata Corp with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradata Corp and FEMALE HEALTH.
Diversification Opportunities for Teradata Corp and FEMALE HEALTH
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Teradata and FEMALE is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Teradata Corp and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and Teradata Corp 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 Teradata Corp are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Teradata Corp i.e., Teradata Corp and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Teradata Corp and FEMALE HEALTH
Assuming the 90 days horizon Teradata Corp is expected to under-perform the FEMALE HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Teradata Corp is 4.43 times less risky than FEMALE HEALTH. The stock trades about -0.11 of its potential returns per unit of risk. The FEMALE HEALTH is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 68.00 in FEMALE HEALTH on October 17, 2024 and sell it today you would earn a total of 6.00 from holding FEMALE HEALTH or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teradata Corp vs. FEMALE HEALTH
Performance |
| Timeline |
| Teradata Corp |
| FEMALE HEALTH |
Teradata Corp and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teradata Corp and FEMALE HEALTH
The main advantage of trading using opposite Teradata Corp and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradata Corp position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Teradata Corp vs. SALESFORCE INC CDR | Teradata Corp vs. MOLSON RS BEVERAGE | Teradata Corp vs. SENECA FOODS A | Teradata Corp vs. THAI BEVERAGE |
| FEMALE HEALTH vs. Linedata Services SA | FEMALE HEALTH vs. Teradata Corp | FEMALE HEALTH vs. HANOVER INSURANCE | FEMALE HEALTH vs. United Insurance Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |