Correlation Between Nine Entertainment and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Nine Entertainment and TTG Fintech 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 Entertainment and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Entertainment Co and TTG Fintech, you can compare the effects of market volatilities on Nine Entertainment and TTG Fintech 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 Entertainment with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Entertainment and TTG Fintech.
Diversification Opportunities for Nine Entertainment and TTG Fintech
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nine and TTG is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nine Entertainment Co and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Nine Entertainment 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 Entertainment Co are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Nine Entertainment i.e., Nine Entertainment and TTG Fintech go up and down completely randomly.
Pair Corralation between Nine Entertainment and TTG Fintech
Assuming the 90 days trading horizon Nine Entertainment Co is expected to generate 1.22 times more return on investment than TTG Fintech. However, Nine Entertainment is 1.22 times more volatile than TTG Fintech. It trades about 0.19 of its potential returns per unit of risk. TTG Fintech is currently generating about -0.32 per unit of risk. If you would invest 135.00 in Nine Entertainment Co on November 27, 2024 and sell it today you would earn a total of 28.00 from holding Nine Entertainment Co or generate 20.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Entertainment Co vs. TTG Fintech
Performance |
| Timeline |
| Nine Entertainment |
| TTG Fintech |
Nine Entertainment and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Entertainment and TTG Fintech
The main advantage of trading using opposite Nine Entertainment and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Entertainment position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Nine Entertainment vs. Retail Food Group | Nine Entertainment vs. Sandon Capital Investments | Nine Entertainment vs. MFF Capital Investments | Nine Entertainment vs. Aspire Mining |
| TTG Fintech vs. Nufarm Finance NZ | TTG Fintech vs. Hammer Metals | TTG Fintech vs. Viva Leisure | TTG Fintech vs. Dexus Convenience Retail |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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