Correlation Between Ticon Freehold and Major Cineplex
Can any of the company-specific risk be diversified away by investing in both Ticon Freehold and Major Cineplex 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 Ticon Freehold and Major Cineplex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ticon Freehold and and Major Cineplex Lifestyle, you can compare the effects of market volatilities on Ticon Freehold and Major Cineplex 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 Ticon Freehold with a short position of Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ticon Freehold and Major Cineplex.
Diversification Opportunities for Ticon Freehold and Major Cineplex
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ticon and Major is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ticon Freehold and and Major Cineplex Lifestyle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Lifestyle and Ticon Freehold 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 Ticon Freehold and are associated (or correlated) with Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Lifestyle has no effect on the direction of Ticon Freehold i.e., Ticon Freehold and Major Cineplex go up and down completely randomly.
Pair Corralation between Ticon Freehold and Major Cineplex
Assuming the 90 days trading horizon Ticon Freehold is expected to generate 1.0 times less return on investment than Major Cineplex. But when comparing it to its historical volatility, Ticon Freehold and is 1.0 times less risky than Major Cineplex. It trades about 0.05 of its potential returns per unit of risk. Major Cineplex Lifestyle is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Major Cineplex Lifestyle on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Major Cineplex Lifestyle or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ticon Freehold and vs. Major Cineplex Lifestyle
Performance |
| Timeline |
| Ticon Freehold |
| Major Cineplex Lifestyle |
Ticon Freehold and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ticon Freehold and Major Cineplex
The main advantage of trading using opposite Ticon Freehold and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ticon Freehold position performs unexpectedly, Major Cineplex 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 Major Cineplex will offset losses from the drop in Major Cineplex's long position.| Ticon Freehold vs. WHA Premium Growth | Ticon Freehold vs. CPN Retail Growth | Ticon Freehold vs. Impact Growth REIT | Ticon Freehold vs. Golden Ventures Leasehold |
| Major Cineplex vs. LH Shopping Centers | Major Cineplex vs. Land and Houses | Major Cineplex vs. Quality Houses Property | Major Cineplex vs. Impact Growth REIT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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