Correlation Between AppYea and Touchpoint Group
Can any of the company-specific risk be diversified away by investing in both AppYea 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 AppYea and Touchpoint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppYea Inc and Touchpoint Group Holdings, you can compare the effects of market volatilities on AppYea 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 AppYea with a short position of Touchpoint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppYea and Touchpoint Group.
Diversification Opportunities for AppYea and Touchpoint Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AppYea and Touchpoint is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AppYea 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 AppYea 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 AppYea 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 AppYea i.e., AppYea and Touchpoint Group go up and down completely randomly.
Pair Corralation between AppYea and Touchpoint Group
Given the investment horizon of 90 days AppYea is expected to generate 3.17 times less return on investment than Touchpoint Group. But when comparing it to its historical volatility, AppYea Inc is 2.65 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Touchpoint Group Holdings on August 28, 2024 and sell it today you would lose (0.01) from holding Touchpoint Group Holdings or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.83% |
| Values | Daily Returns |
AppYea Inc vs. Touchpoint Group Holdings
Performance |
| Timeline |
| AppYea Inc |
| Touchpoint Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AppYea and Touchpoint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppYea and Touchpoint Group
The main advantage of trading using opposite AppYea and Touchpoint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppYea 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.| AppYea vs. AB International Group | AppYea vs. Peer To Peer | AppYea vs. Image Protect | AppYea vs. Bowmo Inc |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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