Correlation Between 4Imprint Group and Taylor Maritime
Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and Taylor Maritime 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 4Imprint Group and Taylor Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Imprint Group Plc and Taylor Maritime Investments, you can compare the effects of market volatilities on 4Imprint Group and Taylor Maritime 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 4Imprint Group with a short position of Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and Taylor Maritime.
Diversification Opportunities for 4Imprint Group and Taylor Maritime
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 4Imprint and Taylor is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve and 4Imprint Group 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 4Imprint Group Plc are associated (or correlated) with Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and Taylor Maritime go up and down completely randomly.
Pair Corralation between 4Imprint Group and Taylor Maritime
Assuming the 90 days trading horizon 4Imprint Group Plc is expected to generate 1.38 times more return on investment than Taylor Maritime. However, 4Imprint Group is 1.38 times more volatile than Taylor Maritime Investments. It trades about 0.04 of its potential returns per unit of risk. Taylor Maritime Investments is currently generating about -0.02 per unit of risk. If you would invest 383,590 in 4Imprint Group Plc on September 12, 2024 and sell it today you would earn a total of 117,410 from holding 4Imprint Group Plc or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Imprint Group Plc vs. Taylor Maritime Investments
Performance |
| Timeline |
| 4Imprint Group Plc |
| Taylor Maritime Inve |
4Imprint Group and Taylor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Imprint Group and Taylor Maritime
The main advantage of trading using opposite 4Imprint Group and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.| 4Imprint Group vs. Taylor Maritime Investments | 4Imprint Group vs. Bankers Investment Trust | 4Imprint Group vs. New Residential Investment | 4Imprint Group vs. Odyssean Investment Trust |
| Taylor Maritime vs. Hong Kong Land | Taylor Maritime vs. Neometals | Taylor Maritime vs. Coor Service Management | Taylor Maritime vs. Fidelity Sustainable USD |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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