Correlation Between Advanced Braking and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Advanced Braking and TTG Fintech 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 Advanced Braking and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Braking Technology and TTG Fintech, you can compare the effects of market volatilities on Advanced Braking and TTG Fintech 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 Advanced Braking with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Braking and TTG Fintech.
Diversification Opportunities for Advanced Braking and TTG Fintech
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advanced and TTG is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Braking Technology and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Advanced Braking 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 Advanced Braking Technology are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Advanced Braking i.e., Advanced Braking and TTG Fintech go up and down completely randomly.
Pair Corralation between Advanced Braking and TTG Fintech
Assuming the 90 days trading horizon Advanced Braking Technology is expected to generate 0.42 times more return on investment than TTG Fintech. However, Advanced Braking Technology is 2.39 times less risky than TTG Fintech. It trades about 0.14 of its potential returns per unit of risk. TTG Fintech is currently generating about -0.08 per unit of risk. If you would invest 4.90 in Advanced Braking Technology on September 3, 2024 and sell it today you would earn a total of 3.20 from holding Advanced Braking Technology or generate 65.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Braking Technology vs. TTG Fintech
Performance |
| Timeline |
| Advanced Braking Tec |
| TTG Fintech |
Advanced Braking and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Braking and TTG Fintech
The main advantage of trading using opposite Advanced Braking and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Braking position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Advanced Braking vs. Westpac Banking | Advanced Braking vs. Champion Iron | Advanced Braking vs. iShares Global Healthcare | Advanced Braking vs. Peel Mining |
| TTG Fintech vs. Jupiter Energy | TTG Fintech vs. WA1 Resources | TTG Fintech vs. Predictive Discovery | TTG Fintech vs. Cooper Metals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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