Correlation Between FOSTOURGRP EO-0001 and TRIPCOM GROUP
Can any of the company-specific risk be diversified away by investing in both FOSTOURGRP EO-0001 and TRIPCOM GROUP 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 FOSTOURGRP EO-0001 and TRIPCOM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOSTOURGRP EO 0001 and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on FOSTOURGRP EO-0001 and TRIPCOM GROUP 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 FOSTOURGRP EO-0001 with a short position of TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOSTOURGRP EO-0001 and TRIPCOM GROUP.
Diversification Opportunities for FOSTOURGRP EO-0001 and TRIPCOM GROUP
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FOSTOURGRP and TRIPCOM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding FOSTOURGRP EO 0001 and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and FOSTOURGRP EO-0001 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 FOSTOURGRP EO 0001 are associated (or correlated) with TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of FOSTOURGRP EO-0001 i.e., FOSTOURGRP EO-0001 and TRIPCOM GROUP go up and down completely randomly.
Pair Corralation between FOSTOURGRP EO-0001 and TRIPCOM GROUP
Assuming the 90 days horizon FOSTOURGRP EO 0001 is expected to generate 4.06 times more return on investment than TRIPCOM GROUP. However, FOSTOURGRP EO-0001 is 4.06 times more volatile than TRIPCOM GROUP DL 00125. It trades about 0.17 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about 0.09 per unit of risk. If you would invest 46.00 in FOSTOURGRP EO 0001 on November 3, 2024 and sell it today you would earn a total of 43.00 from holding FOSTOURGRP EO 0001 or generate 93.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOSTOURGRP EO 0001 vs. TRIPCOM GROUP DL 00125
Performance |
| Timeline |
| FOSTOURGRP EO 0001 |
| TRIPCOM GROUP DL |
FOSTOURGRP EO-0001 and TRIPCOM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOSTOURGRP EO-0001 and TRIPCOM GROUP
The main advantage of trading using opposite FOSTOURGRP EO-0001 and TRIPCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOSTOURGRP EO-0001 position performs unexpectedly, TRIPCOM GROUP 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 TRIPCOM GROUP will offset losses from the drop in TRIPCOM GROUP's long position.| FOSTOURGRP EO-0001 vs. Scottish Mortgage Investment | FOSTOURGRP EO-0001 vs. SEI INVESTMENTS | FOSTOURGRP EO-0001 vs. AOYAMA TRADING | FOSTOURGRP EO-0001 vs. Virtus Investment Partners |
| TRIPCOM GROUP vs. Eastman Chemical | TRIPCOM GROUP vs. USWE SPORTS AB | TRIPCOM GROUP vs. PLAYMATES TOYS | TRIPCOM GROUP vs. Playtech plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |