Correlation Between TTY Biopharm and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both TTY Biopharm and SS Healthcare 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 TTY Biopharm and SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTY Biopharm Co and SS Healthcare Holding, you can compare the effects of market volatilities on TTY Biopharm and SS Healthcare 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 TTY Biopharm with a short position of SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTY Biopharm and SS Healthcare.
Diversification Opportunities for TTY Biopharm and SS Healthcare
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TTY and 4198 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding TTY Biopharm Co and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding and TTY Biopharm 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 TTY Biopharm Co are associated (or correlated) with SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of TTY Biopharm i.e., TTY Biopharm and SS Healthcare go up and down completely randomly.
Pair Corralation between TTY Biopharm and SS Healthcare
Assuming the 90 days trading horizon TTY Biopharm Co is expected to under-perform the SS Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, TTY Biopharm Co is 4.06 times less risky than SS Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The SS Healthcare Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,675 in SS Healthcare Holding on August 30, 2024 and sell it today you would earn a total of 545.00 from holding SS Healthcare Holding or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTY Biopharm Co vs. SS Healthcare Holding
Performance |
| Timeline |
| TTY Biopharm |
| SS Healthcare Holding |
TTY Biopharm and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTY Biopharm and SS Healthcare
The main advantage of trading using opposite TTY Biopharm and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTY Biopharm position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| TTY Biopharm vs. Tehmag Foods | TTY Biopharm vs. Ibase Gaming | TTY Biopharm vs. Founding Construction Development | TTY Biopharm vs. Hunya Foods Co |
| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Delta Asia International | SS Healthcare vs. Hi Clearance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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