Correlation Between TTG Fintech and Sonic Healthcare
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Sonic Healthcare 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 Sonic Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Sonic Healthcare, you can compare the effects of market volatilities on TTG Fintech and Sonic Healthcare 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 Sonic Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Sonic Healthcare.
Diversification Opportunities for TTG Fintech and Sonic Healthcare
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TTG and Sonic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Sonic Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonic Healthcare 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 Sonic Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonic Healthcare has no effect on the direction of TTG Fintech i.e., TTG Fintech and Sonic Healthcare go up and down completely randomly.
Pair Corralation between TTG Fintech and Sonic Healthcare
Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Sonic Healthcare. In addition to that, TTG Fintech is 4.73 times more volatile than Sonic Healthcare. It trades about -0.01 of its total potential returns per unit of risk. Sonic Healthcare is currently generating about 0.01 per unit of volatility. If you would invest 2,859 in Sonic Healthcare on September 3, 2024 and sell it today you would lose (2.00) from holding Sonic Healthcare or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTG Fintech vs. Sonic Healthcare
Performance |
| Timeline |
| TTG Fintech |
| Sonic Healthcare |
TTG Fintech and Sonic Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTG Fintech and Sonic Healthcare
The main advantage of trading using opposite TTG Fintech and Sonic Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Sonic Healthcare 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 Sonic Healthcare will offset losses from the drop in Sonic Healthcare's long position.| TTG Fintech vs. Jupiter Energy | TTG Fintech vs. WA1 Resources | TTG Fintech vs. Predictive Discovery | TTG Fintech vs. Cooper Metals |
| Sonic Healthcare vs. TTG Fintech | Sonic Healthcare vs. Land Homes Group | Sonic Healthcare vs. Regis Healthcare | Sonic Healthcare vs. Horseshoe 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |