Correlation Between TTG Fintech and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and REGAL ASIAN 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 REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on TTG Fintech and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and REGAL ASIAN.
Diversification Opportunities for TTG Fintech and REGAL ASIAN
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTG and REGAL is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of TTG Fintech i.e., TTG Fintech and REGAL ASIAN go up and down completely randomly.
Pair Corralation between TTG Fintech and REGAL ASIAN
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the REGAL ASIAN. In addition to that, TTG Fintech is 5.17 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.01 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.02 per unit of volatility. If you would invest 191.00 in REGAL ASIAN INVESTMENTS on September 3, 2024 and sell it today you would earn a total of 16.00 from holding REGAL ASIAN INVESTMENTS or generate 8.38% 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. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| TTG Fintech |
| REGAL ASIAN INVESTMENTS |
TTG Fintech and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and REGAL ASIAN
The main advantage of trading using opposite TTG Fintech and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| TTG Fintech vs. Jupiter Energy | TTG Fintech vs. WA1 Resources | TTG Fintech vs. Predictive Discovery | TTG Fintech vs. Cooper Metals |
| REGAL ASIAN vs. Aristocrat Leisure | REGAL ASIAN vs. Hawsons Iron | REGAL ASIAN vs. Iron Road | REGAL ASIAN vs. Tombador Iron |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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