Correlation Between TTY Biopharm and Giant Manufacturing
Can any of the company-specific risk be diversified away by investing in both TTY Biopharm and Giant Manufacturing 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 Giant Manufacturing 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 Giant Manufacturing Co, you can compare the effects of market volatilities on TTY Biopharm and Giant Manufacturing 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 Giant Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTY Biopharm and Giant Manufacturing.
Diversification Opportunities for TTY Biopharm and Giant Manufacturing
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TTY and Giant is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding TTY Biopharm Co and Giant Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giant Manufacturing 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 Giant Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giant Manufacturing has no effect on the direction of TTY Biopharm i.e., TTY Biopharm and Giant Manufacturing go up and down completely randomly.
Pair Corralation between TTY Biopharm and Giant Manufacturing
Assuming the 90 days trading horizon TTY Biopharm Co is expected to generate 0.38 times more return on investment than Giant Manufacturing. However, TTY Biopharm Co is 2.66 times less risky than Giant Manufacturing. It trades about 0.0 of its potential returns per unit of risk. Giant Manufacturing Co is currently generating about -0.03 per unit of risk. If you would invest 7,563 in TTY Biopharm Co on August 26, 2024 and sell it today you would lose (183.00) from holding TTY Biopharm Co or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTY Biopharm Co vs. Giant Manufacturing Co
Performance |
| Timeline |
| TTY Biopharm |
| Giant Manufacturing |
TTY Biopharm and Giant Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTY Biopharm and Giant Manufacturing
The main advantage of trading using opposite TTY Biopharm and Giant Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTY Biopharm position performs unexpectedly, Giant Manufacturing 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 Giant Manufacturing will offset losses from the drop in Giant Manufacturing's long position.| TTY Biopharm vs. Grape King Bio | TTY Biopharm vs. ScinoPharm Taiwan | TTY Biopharm vs. YungShin Global Holding | TTY Biopharm vs. Standard Chemical Pharmaceutical |
| Giant Manufacturing vs. Merida Industry Co | Giant Manufacturing vs. President Chain Store | Giant Manufacturing vs. Cheng Shin Rubber | Giant Manufacturing vs. Uni President Enterprises 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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