Correlation Between TTG Fintech and SPASX 200
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and SPASX 200 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 200 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 200 VIX, you can compare the effects of market volatilities on TTG Fintech and SPASX 200 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 200. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and SPASX 200.
Diversification Opportunities for TTG Fintech and SPASX 200
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTG and SPASX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and SPASX 200 VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 200 VIX 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 200. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 200 VIX has no effect on the direction of TTG Fintech i.e., TTG Fintech and SPASX 200 go up and down completely randomly.
Pair Corralation between TTG Fintech and SPASX 200
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the SPASX 200. But the stock apears to be less risky and, when comparing its historical volatility, TTG Fintech is 1.72 times less risky than SPASX 200. The stock trades about -0.04 of its potential returns per unit of risk. The SPASX 200 VIX is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,223 in SPASX 200 VIX on September 12, 2024 and sell it today you would lose (178.00) from holding SPASX 200 VIX or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
TTG Fintech vs. SPASX 200 VIX
Performance |
| Timeline |
TTG Fintech and SPASX 200 Volatility Contrast
Predicted Return Density |
| Returns |
TTG Fintech
Pair trading matchups for TTG Fintech
SPASX 200 VIX
Pair trading matchups for SPASX 200
Pair Trading with TTG Fintech and SPASX 200
The main advantage of trading using opposite TTG Fintech and SPASX 200 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, SPASX 200 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 200 will offset losses from the drop in SPASX 200's long position.| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. Commonwealth Bank of | TTG Fintech vs. ANZ Group Holdings | TTG Fintech vs. National Australia Bank |
| SPASX 200 vs. Farm Pride Foods | SPASX 200 vs. TPG Telecom | SPASX 200 vs. Chalice Mining Limited | SPASX 200 vs. Perseus 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 CEOs Directory module to screen CEOs from public companies around the world.
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