Correlation Between TTG Fintech and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Aurelia Metals 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 TTG Fintech and Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Aurelia Metals, you can compare the effects of market volatilities on TTG Fintech and Aurelia Metals 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 TTG Fintech with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Aurelia Metals.
Diversification Opportunities for TTG Fintech and Aurelia Metals
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTG and Aurelia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Aurelia Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and TTG Fintech 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 TTG Fintech are associated (or correlated) with Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of TTG Fintech i.e., TTG Fintech and Aurelia Metals go up and down completely randomly.
Pair Corralation between TTG Fintech and Aurelia Metals
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Aurelia Metals. In addition to that, TTG Fintech is 1.21 times more volatile than Aurelia Metals. It trades about -0.05 of its total potential returns per unit of risk. Aurelia Metals is currently generating about 0.0 per unit of volatility. If you would invest 19.00 in Aurelia Metals on September 1, 2024 and sell it today you would lose (2.00) from holding Aurelia Metals or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTG Fintech vs. Aurelia Metals
Performance |
| Timeline |
| TTG Fintech |
| Aurelia Metals |
TTG Fintech and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and Aurelia Metals
The main advantage of trading using opposite TTG Fintech and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Aurelia Metals 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 Aurelia Metals will offset losses from the drop in Aurelia Metals' long position.| TTG Fintech vs. PVW Resources | TTG Fintech vs. Woolworths | TTG Fintech vs. Wesfarmers | TTG Fintech vs. Coles Group |
| Aurelia Metals vs. Northern Star Resources | Aurelia Metals vs. Evolution Mining | Aurelia Metals vs. Bluescope Steel | Aurelia Metals vs. Sandfire Resources NL |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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