Correlation Between Humble Fume and Turning Point
Can any of the company-specific risk be diversified away by investing in both Humble Fume and Turning Point 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 Humble Fume and Turning Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humble Fume and Turning Point Brands, you can compare the effects of market volatilities on Humble Fume and Turning Point 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 Humble Fume with a short position of Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humble Fume and Turning Point.
Diversification Opportunities for Humble Fume and Turning Point
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humble and Turning is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Humble Fume and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands and Humble Fume 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 Humble Fume are associated (or correlated) with Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of Humble Fume i.e., Humble Fume and Turning Point go up and down completely randomly.
Pair Corralation between Humble Fume and Turning Point
If you would invest 4,673 in Turning Point Brands on August 28, 2024 and sell it today you would earn a total of 1,557 from holding Turning Point Brands or generate 33.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Humble Fume vs. Turning Point Brands
Performance |
| Timeline |
| Humble Fume |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Turning Point Brands |
Humble Fume and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humble Fume and Turning Point
The main advantage of trading using opposite Humble Fume and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humble Fume position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point's long position.| Humble Fume vs. PT Hanjaya Mandala | Humble Fume vs. Greenlane Holdings | Humble Fume vs. Pyxus International | Humble Fume vs. 22nd Century Group |
| Turning Point vs. Imperial Brands PLC | Turning Point vs. Philip Morris International | Turning Point vs. Japan Tobacco ADR | Turning Point vs. Imperial Brands PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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