Correlation Between Coty and Till Capital
Can any of the company-specific risk be diversified away by investing in both Coty and Till Capital 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 Coty and Till Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coty Inc and Till Capital, you can compare the effects of market volatilities on Coty and Till Capital 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 Coty with a short position of Till Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coty and Till Capital.
Diversification Opportunities for Coty and Till Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coty and Till is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Coty Inc and Till Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Till Capital and Coty 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 Coty Inc are associated (or correlated) with Till Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Till Capital has no effect on the direction of Coty i.e., Coty and Till Capital go up and down completely randomly.
Pair Corralation between Coty and Till Capital
Given the investment horizon of 90 days Coty is expected to generate 97.17 times less return on investment than Till Capital. But when comparing it to its historical volatility, Coty Inc is 2.03 times less risky than Till Capital. It trades about 0.0 of its potential returns per unit of risk. Till Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 402.00 in Till Capital on September 12, 2024 and sell it today you would earn a total of 58.00 from holding Till Capital or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 6.26% |
| Values | Daily Returns |
Coty Inc vs. Till Capital
Performance |
| Timeline |
| Coty Inc |
| Till Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coty and Till Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coty and Till Capital
The main advantage of trading using opposite Coty and Till Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coty position performs unexpectedly, Till Capital 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 Till Capital will offset losses from the drop in Till Capital's long position.| Coty vs. Victory Integrity Smallmid Cap | Coty vs. Hilton Worldwide Holdings | Coty vs. NVIDIA | Coty vs. JPMorgan Chase Co |
| Till Capital vs. Mesa Air Group | Till Capital vs. HE Equipment Services | Till Capital vs. Coty Inc | Till Capital vs. JD Sports Fashion |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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