Correlation Between Touchstone International and Allgens Medical
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By analyzing existing cross correlation between Touchstone International Medical and Allgens Medical Technology, you can compare the effects of market volatilities on Touchstone International and Allgens Medical 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 Touchstone International with a short position of Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Allgens Medical.
Diversification Opportunities for Touchstone International and Allgens Medical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Allgens is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech and Touchstone International 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 Touchstone International Medical are associated (or correlated) with Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Touchstone International i.e., Touchstone International and Allgens Medical go up and down completely randomly.
Pair Corralation between Touchstone International and Allgens Medical
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 0.92 times more return on investment than Allgens Medical. However, Touchstone International Medical is 1.08 times less risky than Allgens Medical. It trades about -0.19 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about -0.28 per unit of risk. If you would invest 1,918 in Touchstone International Medical on October 21, 2024 and sell it today you would lose (130.00) from holding Touchstone International Medical or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Allgens Medical Technology
Performance |
| Timeline |
| Touchstone International |
| Allgens Medical Tech |
Touchstone International and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Allgens Medical
The main advantage of trading using opposite Touchstone International and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.The idea behind Touchstone International Medical and Allgens Medical Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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