Correlation Between TTG Fintech and Nsx
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Nsx 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 Nsx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Nsx, you can compare the effects of market volatilities on TTG Fintech and Nsx 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 Nsx. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Nsx.
Diversification Opportunities for TTG Fintech and Nsx
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between TTG and Nsx is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Nsx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nsx 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 Nsx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nsx has no effect on the direction of TTG Fintech i.e., TTG Fintech and Nsx go up and down completely randomly.
Pair Corralation between TTG Fintech and Nsx
Assuming the 90 days trading horizon TTG Fintech is expected to generate 2.16 times less return on investment than Nsx. In addition to that, TTG Fintech is 1.24 times more volatile than Nsx. It trades about 0.01 of its total potential returns per unit of risk. Nsx is currently generating about 0.03 per unit of volatility. If you would invest 2.67 in Nsx on August 25, 2024 and sell it today you would lose (0.07) from holding Nsx or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTG Fintech vs. Nsx
Performance |
| Timeline |
| TTG Fintech |
| Nsx |
TTG Fintech and Nsx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and Nsx
The main advantage of trading using opposite TTG Fintech and Nsx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Nsx 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 Nsx will offset losses from the drop in Nsx's long position.| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. BHP Group Limited | TTG Fintech vs. Rio Tinto | TTG Fintech vs. Macquarie Group Ltd |
| Nsx vs. Flagship Investments | Nsx vs. A1 Investments Resources | Nsx vs. Centaurus Metals | Nsx vs. Strickland Metals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |