Correlation Between AAC Clyde and Tangiamo Touch
Can any of the company-specific risk be diversified away by investing in both AAC Clyde and Tangiamo Touch 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 AAC Clyde and Tangiamo Touch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Clyde Space and Tangiamo Touch Technology, you can compare the effects of market volatilities on AAC Clyde and Tangiamo Touch 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 AAC Clyde with a short position of Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and Tangiamo Touch.
Diversification Opportunities for AAC Clyde and Tangiamo Touch
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAC and Tangiamo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and Tangiamo Touch Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangiamo Touch Technology and AAC Clyde 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 AAC Clyde Space are associated (or correlated) with Tangiamo Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangiamo Touch Technology has no effect on the direction of AAC Clyde i.e., AAC Clyde and Tangiamo Touch go up and down completely randomly.
Pair Corralation between AAC Clyde and Tangiamo Touch
Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 0.29 times more return on investment than Tangiamo Touch. However, AAC Clyde Space is 3.42 times less risky than Tangiamo Touch. It trades about 0.01 of its potential returns per unit of risk. Tangiamo Touch Technology is currently generating about -0.04 per unit of risk. If you would invest 4,865 in AAC Clyde Space on September 3, 2024 and sell it today you would lose (65.00) from holding AAC Clyde Space or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC Clyde Space vs. Tangiamo Touch Technology
Performance |
| Timeline |
| AAC Clyde Space |
| Tangiamo Touch Technology |
AAC Clyde and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Clyde and Tangiamo Touch
The main advantage of trading using opposite AAC Clyde and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Clyde position performs unexpectedly, Tangiamo Touch 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 Tangiamo Touch will offset losses from the drop in Tangiamo Touch's long position.| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
| Tangiamo Touch vs. Kambi Group PLC | Tangiamo Touch vs. Betsson AB | Tangiamo Touch vs. Evolution AB | Tangiamo Touch vs. Embracer Group AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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