Correlation Between Bio Gene and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Bio Gene 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 Bio Gene and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Gene Technology and TTG Fintech, you can compare the effects of market volatilities on Bio Gene 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 Bio Gene with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Gene and TTG Fintech.
Diversification Opportunities for Bio Gene and TTG Fintech
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bio and TTG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bio Gene Technology and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Bio Gene 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 Bio Gene 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 Bio Gene i.e., Bio Gene and TTG Fintech go up and down completely randomly.
Pair Corralation between Bio Gene and TTG Fintech
Assuming the 90 days trading horizon Bio Gene is expected to generate 2.38 times less return on investment than TTG Fintech. But when comparing it to its historical volatility, Bio Gene Technology is 2.21 times less risky than TTG Fintech. It trades about 0.1 of its potential returns per unit of risk. TTG Fintech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.60 in TTG Fintech on September 22, 2024 and sell it today you would earn a total of 0.10 from holding TTG Fintech or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Gene Technology vs. TTG Fintech
Performance |
| Timeline |
| Bio Gene Technology |
| TTG Fintech |
Bio Gene and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Gene and TTG Fintech
The main advantage of trading using opposite Bio Gene and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Gene 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.| Bio Gene vs. Northern Star Resources | Bio Gene vs. Evolution Mining | Bio Gene vs. Bluescope Steel | Bio Gene vs. Sandfire Resources NL |
| TTG Fintech vs. Richmond Vanadium Technology | TTG Fintech vs. Cleanaway Waste Management | TTG Fintech vs. Bio Gene Technology | TTG Fintech vs. Skycity Entertainment Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |