Correlation Between Prime Financial and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Prime Financial 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 Prime Financial and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prime Financial Group and TTG Fintech, you can compare the effects of market volatilities on Prime Financial 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 Prime Financial with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Financial and TTG Fintech.
Diversification Opportunities for Prime Financial and TTG Fintech
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prime and TTG is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Prime Financial Group and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Prime Financial 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 Prime Financial Group 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 Prime Financial i.e., Prime Financial and TTG Fintech go up and down completely randomly.
Pair Corralation between Prime Financial and TTG Fintech
Assuming the 90 days trading horizon Prime Financial Group is expected to generate 0.47 times more return on investment than TTG Fintech. However, Prime Financial Group is 2.13 times less risky than TTG Fintech. It trades about 0.03 of its potential returns per unit of risk. TTG Fintech is currently generating about -0.01 per unit of risk. If you would invest 18.00 in Prime Financial Group on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Prime Financial Group or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Prime Financial Group vs. TTG Fintech
Performance |
| Timeline |
| Prime Financial Group |
| TTG Fintech |
Prime Financial and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Financial and TTG Fintech
The main advantage of trading using opposite Prime Financial and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Financial 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.| Prime Financial vs. Energy Resources | Prime Financial vs. 88 Energy | Prime Financial vs. Amani Gold | Prime Financial vs. A1 Investments Resources |
| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. Macquarie Group | TTG Fintech vs. Challenger | TTG Fintech vs. BHP Group Limited |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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