Correlation Between TFS FINANCIAL and Grizzly Discoveries
Can any of the company-specific risk be diversified away by investing in both TFS FINANCIAL and Grizzly Discoveries 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 TFS FINANCIAL and Grizzly Discoveries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFS FINANCIAL and Grizzly Discoveries, you can compare the effects of market volatilities on TFS FINANCIAL and Grizzly Discoveries 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 TFS FINANCIAL with a short position of Grizzly Discoveries. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFS FINANCIAL and Grizzly Discoveries.
Diversification Opportunities for TFS FINANCIAL and Grizzly Discoveries
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFS and Grizzly is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding TFS FINANCIAL and Grizzly Discoveries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzly Discoveries and TFS 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 TFS FINANCIAL are associated (or correlated) with Grizzly Discoveries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzly Discoveries has no effect on the direction of TFS FINANCIAL i.e., TFS FINANCIAL and Grizzly Discoveries go up and down completely randomly.
Pair Corralation between TFS FINANCIAL and Grizzly Discoveries
Assuming the 90 days trading horizon TFS FINANCIAL is expected to generate 146.61 times less return on investment than Grizzly Discoveries. But when comparing it to its historical volatility, TFS FINANCIAL is 30.95 times less risky than Grizzly Discoveries. It trades about 0.03 of its potential returns per unit of risk. Grizzly Discoveries is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Grizzly Discoveries on September 14, 2024 and sell it today you would lose (6.45) from holding Grizzly Discoveries or give up 99.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
TFS FINANCIAL vs. Grizzly Discoveries
Performance |
| Timeline |
| TFS FINANCIAL |
| Grizzly Discoveries |
TFS FINANCIAL and Grizzly Discoveries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFS FINANCIAL and Grizzly Discoveries
The main advantage of trading using opposite TFS FINANCIAL and Grizzly Discoveries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS FINANCIAL position performs unexpectedly, Grizzly Discoveries 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 Grizzly Discoveries will offset losses from the drop in Grizzly Discoveries' long position.| TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc |
| Grizzly Discoveries vs. TFS FINANCIAL | Grizzly Discoveries vs. Regions Financial | Grizzly Discoveries vs. Aozora Bank | Grizzly Discoveries vs. TRADEGATE |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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