Correlation Between TSOGO SUN and SAMS INTERNAT
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and SAMS INTERNAT 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 TSOGO SUN and SAMS INTERNAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and SAMS INTERNAT R, you can compare the effects of market volatilities on TSOGO SUN and SAMS INTERNAT 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 TSOGO SUN with a short position of SAMS INTERNAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and SAMS INTERNAT.
Diversification Opportunities for TSOGO SUN and SAMS INTERNAT
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TSOGO and SAMS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and SAMS INTERNAT R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMS INTERNAT R and TSOGO SUN 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 TSOGO SUN GAMING are associated (or correlated) with SAMS INTERNAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMS INTERNAT R has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and SAMS INTERNAT go up and down completely randomly.
Pair Corralation between TSOGO SUN and SAMS INTERNAT
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 1.53 times more return on investment than SAMS INTERNAT. However, TSOGO SUN is 1.53 times more volatile than SAMS INTERNAT R. It trades about 0.05 of its potential returns per unit of risk. SAMS INTERNAT R is currently generating about 0.03 per unit of risk. If you would invest 30.00 in TSOGO SUN GAMING on September 12, 2024 and sell it today you would earn a total of 25.00 from holding TSOGO SUN GAMING or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. SAMS INTERNAT R
Performance |
| Timeline |
| TSOGO SUN GAMING |
| SAMS INTERNAT R |
TSOGO SUN and SAMS INTERNAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and SAMS INTERNAT
The main advantage of trading using opposite TSOGO SUN and SAMS INTERNAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, SAMS INTERNAT 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 SAMS INTERNAT will offset losses from the drop in SAMS INTERNAT's long position.| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
| SAMS INTERNAT vs. Penn National Gaming | SAMS INTERNAT vs. Boyd Gaming | SAMS INTERNAT vs. GameStop Corp | SAMS INTERNAT vs. TSOGO SUN GAMING |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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