Correlation Between TSOGO SUN and VITA 34
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and VITA 34 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 VITA 34 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 VITA 34 AG, you can compare the effects of market volatilities on TSOGO SUN and VITA 34 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 VITA 34. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and VITA 34.
Diversification Opportunities for TSOGO SUN and VITA 34
Significant diversification
The 3 months correlation between TSOGO and VITA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and VITA 34 AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VITA 34 AG 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 VITA 34. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VITA 34 AG has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and VITA 34 go up and down completely randomly.
Pair Corralation between TSOGO SUN and VITA 34
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 2.09 times more return on investment than VITA 34. However, TSOGO SUN is 2.09 times more volatile than VITA 34 AG. It trades about 0.06 of its potential returns per unit of risk. VITA 34 AG is currently generating about -0.04 per unit of risk. If you would invest 18.00 in TSOGO SUN GAMING on September 2, 2024 and sell it today you would earn a total of 36.00 from holding TSOGO SUN GAMING or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. VITA 34 AG
Performance |
| Timeline |
| TSOGO SUN GAMING |
| VITA 34 AG |
TSOGO SUN and VITA 34 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and VITA 34
The main advantage of trading using opposite TSOGO SUN and VITA 34 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, VITA 34 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 VITA 34 will offset losses from the drop in VITA 34'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 |
| VITA 34 vs. International Consolidated Airlines | VITA 34 vs. AEGEAN AIRLINES | VITA 34 vs. Aegean Airlines SA | VITA 34 vs. MagnaChip Semiconductor 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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