Correlation Between TSOGO SUN and Strix Group
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and Strix Group 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 Strix Group 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 Strix Group Plc, you can compare the effects of market volatilities on TSOGO SUN and Strix Group 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 Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Strix Group.
Diversification Opportunities for TSOGO SUN and Strix Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TSOGO and Strix is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc 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 Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and Strix Group go up and down completely randomly.
Pair Corralation between TSOGO SUN and Strix Group
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Strix Group. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 2.63 times less risky than Strix Group. The stock trades about -0.13 of its potential returns per unit of risk. The Strix Group Plc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Strix Group Plc on August 28, 2024 and sell it today you would lose (1.00) from holding Strix Group Plc or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Strix Group Plc
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Strix Group Plc |
TSOGO SUN and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Strix Group
The main advantage of trading using opposite TSOGO SUN and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, Strix Group 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 Strix Group will offset losses from the drop in Strix Group'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 |
| Strix Group vs. Japan Tobacco | Strix Group vs. Transport International Holdings | Strix Group vs. Taiwan Semiconductor Manufacturing | Strix Group vs. UPDATE SOFTWARE |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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