Correlation Between Cboe UK and Tetragon Financial
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By analyzing existing cross correlation between Cboe UK Consumer and Tetragon Financial Group, you can compare the effects of market volatilities on Cboe UK and Tetragon Financial 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 Cboe UK with a short position of Tetragon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Tetragon Financial.
Diversification Opportunities for Cboe UK and Tetragon Financial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Tetragon is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Tetragon Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tetragon Financial and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Tetragon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tetragon Financial has no effect on the direction of Cboe UK i.e., Cboe UK and Tetragon Financial go up and down completely randomly.
Pair Corralation between Cboe UK and Tetragon Financial
Assuming the 90 days trading horizon Cboe UK is expected to generate 5.51 times less return on investment than Tetragon Financial. But when comparing it to its historical volatility, Cboe UK Consumer is 3.41 times less risky than Tetragon Financial. It trades about 0.28 of its potential returns per unit of risk. Tetragon Financial Group is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Tetragon Financial Group on October 25, 2024 and sell it today you would earn a total of 240.00 from holding Tetragon Financial Group or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Tetragon Financial Group
Performance |
| Timeline |
Cboe UK and Tetragon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Tetragon Financial Group
Pair trading matchups for Tetragon Financial
Pair Trading with Cboe UK and Tetragon Financial
The main advantage of trading using opposite Cboe UK and Tetragon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Tetragon Financial 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 Tetragon Financial will offset losses from the drop in Tetragon Financial's long position.| Cboe UK vs. Discover Financial Services | Cboe UK vs. Ally Financial | Cboe UK vs. Pentair PLC | Cboe UK vs. Systemair AB |
| Tetragon Financial vs. Griffin Mining | Tetragon Financial vs. Pan American Silver | Tetragon Financial vs. Summit Materials Cl | Tetragon Financial vs. Atalaya Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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