Correlation Between TTG Fintech and SPASX 20
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and SPASX 20 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 SPASX 20 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and SPASX 20, you can compare the effects of market volatilities on TTG Fintech and SPASX 20 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 SPASX 20. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and SPASX 20.
Diversification Opportunities for TTG Fintech and SPASX 20
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTG and SPASX is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and SPASX 20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 20 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 SPASX 20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 20 has no effect on the direction of TTG Fintech i.e., TTG Fintech and SPASX 20 go up and down completely randomly.
Pair Corralation between TTG Fintech and SPASX 20
Assuming the 90 days trading horizon TTG Fintech is expected to generate 10.0 times more return on investment than SPASX 20. However, TTG Fintech is 10.0 times more volatile than SPASX 20. It trades about 0.01 of its potential returns per unit of risk. SPASX 20 is currently generating about 0.09 per unit of risk. If you would invest 1.00 in TTG Fintech on September 4, 2024 and sell it today you would lose (0.40) from holding TTG Fintech or give up 40.0% 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. SPASX 20
Performance |
| Timeline |
TTG Fintech and SPASX 20 Volatility Contrast
Predicted Return Density |
| Returns |
TTG Fintech
Pair trading matchups for TTG Fintech
SPASX 20
Pair trading matchups for SPASX 20
Pair Trading with TTG Fintech and SPASX 20
The main advantage of trading using opposite TTG Fintech and SPASX 20 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, SPASX 20 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 SPASX 20 will offset losses from the drop in SPASX 20's long position.| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. Commonwealth Bank | TTG Fintech vs. Commonwealth Bank of | TTG Fintech vs. Australia and New |
| SPASX 20 vs. Truscott Mining Corp | SPASX 20 vs. Mach7 Technologies | SPASX 20 vs. Perseus Mining | SPASX 20 vs. Data3 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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