Correlation Between TSOGO SUN and Media
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on TSOGO SUN and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Media.
Diversification Opportunities for TSOGO SUN and Media
Very weak diversification
The 3 months correlation between TSOGO and Media is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and Media go up and down completely randomly.
Pair Corralation between TSOGO SUN and Media
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 1.51 times more return on investment than Media. However, TSOGO SUN is 1.51 times more volatile than Media and Games. It trades about 0.06 of its potential returns per unit of risk. Media and Games is currently generating about 0.07 per unit of risk. If you would invest 18.00 in TSOGO SUN GAMING on August 25, 2024 and sell it today you would earn a total of 42.00 from holding TSOGO SUN GAMING or generate 233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Media and Games
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Media and Games |
TSOGO SUN and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Media
The main advantage of trading using opposite TSOGO SUN and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. GALENA MINING LTD | Media vs. New Residential Investment | Media vs. Chuangs China Investments | Media vs. CDL INVESTMENT |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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