Correlation Between TTG Fintech and Future Generation
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Future Generation 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 Future Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Future Generation Global, you can compare the effects of market volatilities on TTG Fintech and Future Generation 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 Future Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Future Generation.
Diversification Opportunities for TTG Fintech and Future Generation
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTG and Future is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Future Generation Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Generation Global 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 Future Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Generation Global has no effect on the direction of TTG Fintech i.e., TTG Fintech and Future Generation go up and down completely randomly.
Pair Corralation between TTG Fintech and Future Generation
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Future Generation. In addition to that, TTG Fintech is 6.92 times more volatile than Future Generation Global. It trades about -0.08 of its total potential returns per unit of risk. Future Generation Global is currently generating about 0.11 per unit of volatility. If you would invest 121.00 in Future Generation Global on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Future Generation Global or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTG Fintech vs. Future Generation Global
Performance |
| Timeline |
| TTG Fintech |
| Future Generation Global |
TTG Fintech and Future Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and Future Generation
The main advantage of trading using opposite TTG Fintech and Future Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Future Generation 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 Future Generation will offset losses from the drop in Future Generation's long position.| TTG Fintech vs. Jupiter Energy | TTG Fintech vs. WA1 Resources | TTG Fintech vs. Predictive Discovery | TTG Fintech vs. Cooper Metals |
| Future Generation vs. Audio Pixels Holdings | Future Generation vs. Iodm | Future Generation vs. Nsx | Future Generation vs. TTG Fintech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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