Correlation Between TSOGO SUN and SMA Solar
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and SMA Solar 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 SMA Solar 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 SMA Solar Technology, you can compare the effects of market volatilities on TSOGO SUN and SMA Solar 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and SMA Solar.
Diversification Opportunities for TSOGO SUN and SMA Solar
Very weak diversification
The 3 months correlation between TSOGO and SMA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and SMA Solar go up and down completely randomly.
Pair Corralation between TSOGO SUN and SMA Solar
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the SMA Solar. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 1.69 times less risky than SMA Solar. The stock trades about -0.03 of its potential returns per unit of risk. The SMA Solar Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,364 in SMA Solar Technology on November 28, 2024 and sell it today you would earn a total of 108.00 from holding SMA Solar Technology or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. SMA Solar Technology
Performance |
| Timeline |
| TSOGO SUN GAMING |
| SMA Solar Technology |
TSOGO SUN and SMA Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and SMA Solar
The main advantage of trading using opposite TSOGO SUN and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, SMA Solar 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 SMA Solar will offset losses from the drop in SMA Solar's long position.| TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. Galaxy Entertainment Group | TSOGO SUN vs. Sands China | TSOGO SUN vs. MGM Resorts International |
| SMA Solar vs. GREENX METALS LTD | SMA Solar vs. Brockhaus Capital Management | SMA Solar vs. Coor Service Management | SMA Solar vs. FIREWEED METALS P |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |