Correlation Between AVITA Medical and TTM Technologies
Can any of the company-specific risk be diversified away by investing in both AVITA Medical and TTM Technologies 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 AVITA Medical and TTM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVITA Medical and TTM Technologies, you can compare the effects of market volatilities on AVITA Medical and TTM Technologies 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 AVITA Medical with a short position of TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVITA Medical and TTM Technologies.
Diversification Opportunities for AVITA Medical and TTM Technologies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVITA and TTM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AVITA Medical and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies and AVITA Medical 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 AVITA Medical are associated (or correlated) with TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of AVITA Medical i.e., AVITA Medical and TTM Technologies go up and down completely randomly.
Pair Corralation between AVITA Medical and TTM Technologies
Assuming the 90 days trading horizon AVITA Medical is expected to generate 1.71 times more return on investment than TTM Technologies. However, AVITA Medical is 1.71 times more volatile than TTM Technologies. It trades about 0.22 of its potential returns per unit of risk. TTM Technologies is currently generating about 0.28 per unit of risk. If you would invest 206.00 in AVITA Medical on September 6, 2024 and sell it today you would earn a total of 38.00 from holding AVITA Medical or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
AVITA Medical vs. TTM Technologies
Performance |
| Timeline |
| AVITA Medical |
| TTM Technologies |
AVITA Medical and TTM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVITA Medical and TTM Technologies
The main advantage of trading using opposite AVITA Medical and TTM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVITA Medical position performs unexpectedly, TTM Technologies 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 TTM Technologies will offset losses from the drop in TTM Technologies' long position.| AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc |
| TTM Technologies vs. INDOFOOD AGRI RES | TTM Technologies vs. LG Display Co | TTM Technologies vs. HF FOODS GRP | TTM Technologies vs. Columbia Sportswear |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |