Correlation Between Golden Friends and Turvo International
Can any of the company-specific risk be diversified away by investing in both Golden Friends and Turvo International 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 Golden Friends and Turvo International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Friends and Turvo International Co, you can compare the effects of market volatilities on Golden Friends and Turvo International 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 Golden Friends with a short position of Turvo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Friends and Turvo International.
Diversification Opportunities for Golden Friends and Turvo International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Turvo is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Golden Friends and Turvo International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turvo International and Golden Friends 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 Golden Friends are associated (or correlated) with Turvo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turvo International has no effect on the direction of Golden Friends i.e., Golden Friends and Turvo International go up and down completely randomly.
Pair Corralation between Golden Friends and Turvo International
Assuming the 90 days trading horizon Golden Friends is expected to under-perform the Turvo International. But the stock apears to be less risky and, when comparing its historical volatility, Golden Friends is 7.28 times less risky than Turvo International. The stock trades about -0.19 of its potential returns per unit of risk. The Turvo International Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 |
Golden Friends vs. Turvo International Co
Performance |
| Timeline |
| Golden Friends |
| Turvo International |
Golden Friends and Turvo International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Friends and Turvo International
The main advantage of trading using opposite Golden Friends and Turvo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Friends position performs unexpectedly, Turvo International 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 Turvo International will offset losses from the drop in Turvo International's long position.| Golden Friends vs. Charoen Pokphand Enterprise | Golden Friends vs. Taiwan Sakura Corp | Golden Friends vs. Great Wall Enterprise | Golden Friends vs. TTET Union Corp |
| Turvo International vs. Greatek Electronics | Turvo International vs. Elan Microelectronics Corp | Turvo International vs. Sigurd Microelectronics Corp | Turvo International vs. Hota Industrial Mfg |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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