Correlation Between Helium One and Tetragon Financial
Can any of the company-specific risk be diversified away by investing in both Helium One and Tetragon Financial 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 Helium One and Tetragon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helium One Global and Tetragon Financial Group, you can compare the effects of market volatilities on Helium One and Tetragon Financial 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 Helium One with a short position of Tetragon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helium One and Tetragon Financial.
Diversification Opportunities for Helium One and Tetragon Financial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Helium and Tetragon is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Helium One Global and Tetragon Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tetragon Financial and Helium One 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 Helium One Global are associated (or correlated) with Tetragon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tetragon Financial has no effect on the direction of Helium One i.e., Helium One and Tetragon Financial go up and down completely randomly.
Pair Corralation between Helium One and Tetragon Financial
Assuming the 90 days trading horizon Helium One Global is expected to under-perform the Tetragon Financial. In addition to that, Helium One is 1.96 times more volatile than Tetragon Financial Group. It trades about -0.09 of its total potential returns per unit of risk. Tetragon Financial Group is currently generating about 0.45 per unit of volatility. If you would invest 1,410 in Tetragon Financial Group on October 25, 2024 and sell it today you would earn a total of 240.00 from holding Tetragon Financial Group or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helium One Global vs. Tetragon Financial Group
Performance |
| Timeline |
| Helium One Global |
| Tetragon Financial |
Helium One and Tetragon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helium One and Tetragon Financial
The main advantage of trading using opposite Helium One and Tetragon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helium One position performs unexpectedly, Tetragon Financial 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 Tetragon Financial will offset losses from the drop in Tetragon Financial's long position.| Helium One vs. Naturhouse Health SA | Helium One vs. Flutter Entertainment PLC | Helium One vs. G5 Entertainment AB | Helium One vs. Prosiebensat 1 Media |
| Tetragon Financial vs. Griffin Mining | Tetragon Financial vs. Pan American Silver | Tetragon Financial vs. Summit Materials Cl | Tetragon Financial vs. Atalaya Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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