Correlation Between TSOGO SUN and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and FUTURE GAMING 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 FUTURE GAMING 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 FUTURE GAMING GRP, you can compare the effects of market volatilities on TSOGO SUN and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and FUTURE GAMING.
Diversification Opportunities for TSOGO SUN and FUTURE GAMING
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TSOGO and FUTURE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and FUTURE GAMING go up and down completely randomly.
Pair Corralation between TSOGO SUN and FUTURE GAMING
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 0.22 times more return on investment than FUTURE GAMING. However, TSOGO SUN GAMING is 4.47 times less risky than FUTURE GAMING. It trades about -0.37 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.1 per unit of risk. If you would invest 64.00 in TSOGO SUN GAMING on September 1, 2024 and sell it today you would lose (5.00) from holding TSOGO SUN GAMING or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. FUTURE GAMING GRP
Performance |
| Timeline |
| TSOGO SUN GAMING |
| FUTURE GAMING GRP |
TSOGO SUN and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and FUTURE GAMING
The main advantage of trading using opposite TSOGO SUN and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| FUTURE GAMING vs. Churchill Downs Incorporated | FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp |
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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