Correlation Between ANSYS and Touchpoint Group
Can any of the company-specific risk be diversified away by investing in both ANSYS and Touchpoint 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 ANSYS and Touchpoint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANSYS Inc and Touchpoint Group Holdings, you can compare the effects of market volatilities on ANSYS and Touchpoint 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 ANSYS with a short position of Touchpoint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANSYS and Touchpoint Group.
Diversification Opportunities for ANSYS and Touchpoint Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANSYS and Touchpoint is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and Touchpoint Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchpoint Group Holdings and ANSYS 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 ANSYS Inc are associated (or correlated) with Touchpoint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchpoint Group Holdings has no effect on the direction of ANSYS i.e., ANSYS and Touchpoint Group go up and down completely randomly.
Pair Corralation between ANSYS and Touchpoint Group
Given the investment horizon of 90 days ANSYS is expected to generate 64.96 times less return on investment than Touchpoint Group. But when comparing it to its historical volatility, ANSYS Inc is 21.07 times less risky than Touchpoint Group. It trades about 0.05 of its potential returns per unit of risk. Touchpoint Group Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Touchpoint Group Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Touchpoint Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.67% |
| Values | Daily Returns |
ANSYS Inc vs. Touchpoint Group Holdings
Performance |
| Timeline |
| ANSYS Inc |
| Touchpoint Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ANSYS and Touchpoint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANSYS and Touchpoint Group
The main advantage of trading using opposite ANSYS and Touchpoint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANSYS position performs unexpectedly, Touchpoint 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 Touchpoint Group will offset losses from the drop in Touchpoint Group's long position.The idea behind ANSYS Inc and Touchpoint Group Holdings 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.| Touchpoint Group vs. Protek Capital | Touchpoint Group vs. On4 Communications | Touchpoint Group vs. Bowmo Inc | Touchpoint Group vs. BHPA Inc |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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