Correlation Between Nine Dragons and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Nine Dragons and TFS 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 Nine Dragons and TFS FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Dragons Paper and TFS FINANCIAL, you can compare the effects of market volatilities on Nine Dragons and TFS 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 Nine Dragons with a short position of TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Dragons and TFS FINANCIAL.
Diversification Opportunities for Nine Dragons and TFS FINANCIAL
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nine and TFS is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nine Dragons Paper and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL and Nine Dragons 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 Nine Dragons Paper are associated (or correlated) with TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of Nine Dragons i.e., Nine Dragons and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between Nine Dragons and TFS FINANCIAL
Assuming the 90 days horizon Nine Dragons is expected to generate 5.38 times less return on investment than TFS FINANCIAL. In addition to that, Nine Dragons is 3.23 times more volatile than TFS FINANCIAL. It trades about 0.0 of its total potential returns per unit of risk. TFS FINANCIAL is currently generating about 0.05 per unit of volatility. If you would invest 1,048 in TFS FINANCIAL on September 2, 2024 and sell it today you would earn a total of 282.00 from holding TFS FINANCIAL or generate 26.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Dragons Paper vs. TFS FINANCIAL
Performance |
| Timeline |
| Nine Dragons Paper |
| TFS FINANCIAL |
Nine Dragons and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Dragons and TFS FINANCIAL
The main advantage of trading using opposite Nine Dragons and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Dragons position performs unexpectedly, TFS 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL's long position.| Nine Dragons vs. IMAGIN MEDICAL INC | Nine Dragons vs. Dairy Farm International | Nine Dragons vs. Australian Agricultural | Nine Dragons vs. Daito Trust Construction |
| TFS FINANCIAL vs. SIVERS SEMICONDUCTORS AB | TFS FINANCIAL vs. Darden Restaurants | TFS FINANCIAL vs. Reliance Steel Aluminum | TFS FINANCIAL vs. Q2M Managementberatung AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |