Correlation Between Stingray and Transcontinental
Can any of the company-specific risk be diversified away by investing in both Stingray and Transcontinental 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 Stingray and Transcontinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stingray Group and Transcontinental, you can compare the effects of market volatilities on Stingray and Transcontinental 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 Stingray with a short position of Transcontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stingray and Transcontinental.
Diversification Opportunities for Stingray and Transcontinental
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stingray and Transcontinental is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stingray Group and Transcontinental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcontinental and Stingray 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 Stingray Group are associated (or correlated) with Transcontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcontinental has no effect on the direction of Stingray i.e., Stingray and Transcontinental go up and down completely randomly.
Pair Corralation between Stingray and Transcontinental
Assuming the 90 days trading horizon Stingray Group is expected to generate 1.2 times more return on investment than Transcontinental. However, Stingray is 1.2 times more volatile than Transcontinental. It trades about 0.06 of its potential returns per unit of risk. Transcontinental is currently generating about 0.04 per unit of risk. If you would invest 456.00 in Stingray Group on September 25, 2024 and sell it today you would earn a total of 288.00 from holding Stingray Group or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Stingray Group vs. Transcontinental
Performance |
| Timeline |
| Stingray Group |
| Transcontinental |
Stingray and Transcontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stingray and Transcontinental
The main advantage of trading using opposite Stingray and Transcontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stingray position performs unexpectedly, Transcontinental 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 Transcontinental will offset losses from the drop in Transcontinental's long position.| Stingray vs. Premium Income | Stingray vs. E L Financial Corp | Stingray vs. Fairfax Financial Holdings | Stingray vs. Fairfax Financial Holdings |
| Transcontinental vs. CCL Industries | Transcontinental vs. Quebecor | Transcontinental vs. Winpak | Transcontinental vs. Restaurant Brands International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |