Correlation Between TTG Fintech and Prime Financial
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Prime Financial 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 Prime Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Prime Financial Group, you can compare the effects of market volatilities on TTG Fintech and Prime Financial 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 Prime Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Prime Financial.
Diversification Opportunities for TTG Fintech and Prime Financial
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TTG and Prime is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Prime Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Financial Group 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 Prime Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Financial Group has no effect on the direction of TTG Fintech i.e., TTG Fintech and Prime Financial go up and down completely randomly.
Pair Corralation between TTG Fintech and Prime Financial
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Prime Financial. In addition to that, TTG Fintech is 1.91 times more volatile than Prime Financial Group. It trades about -0.09 of its total potential returns per unit of risk. Prime Financial Group is currently generating about 0.02 per unit of volatility. If you would invest 21.00 in Prime Financial Group on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Prime Financial Group or generate 4.76% 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. Prime Financial Group
Performance |
| Timeline |
| TTG Fintech |
| Prime Financial Group |
TTG Fintech and Prime Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and Prime Financial
The main advantage of trading using opposite TTG Fintech and Prime Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Prime Financial 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 Prime Financial will offset losses from the drop in Prime Financial's long position.| TTG Fintech vs. Jupiter Energy | TTG Fintech vs. WA1 Resources | TTG Fintech vs. Predictive Discovery | TTG Fintech vs. Cooper Metals |
| Prime Financial vs. Audio Pixels Holdings | Prime Financial vs. Iodm | Prime Financial vs. Nsx | Prime Financial 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |