Correlation Between Optiva and Tuya
Can any of the company-specific risk be diversified away by investing in both Optiva and Tuya 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 Optiva and Tuya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optiva Inc and Tuya Inc ADR, you can compare the effects of market volatilities on Optiva and Tuya 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 Optiva with a short position of Tuya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optiva and Tuya.
Diversification Opportunities for Optiva and Tuya
Pay attention - limited upside
The 3 months correlation between Optiva and Tuya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Optiva Inc and Tuya Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuya Inc ADR and Optiva 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 Optiva Inc are associated (or correlated) with Tuya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuya Inc ADR has no effect on the direction of Optiva i.e., Optiva and Tuya go up and down completely randomly.
Pair Corralation between Optiva and Tuya
If you would invest 159.00 in Tuya Inc ADR on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Tuya Inc ADR or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optiva Inc vs. Tuya Inc ADR
Performance |
| Timeline |
| Optiva Inc |
| Tuya Inc ADR |
Optiva and Tuya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optiva and Tuya
The main advantage of trading using opposite Optiva and Tuya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optiva position performs unexpectedly, Tuya 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 Tuya will offset losses from the drop in Tuya's long position.| Optiva vs. Priority Technology Holdings | Optiva vs. Sangoma Technologies Corp | Optiva vs. Lesaka Technologies | Optiva vs. Repay Holdings Corp |
| Tuya vs. Repay Holdings Corp | Tuya vs. Global Blue Group | Tuya vs. Optiva Inc | Tuya vs. Sangoma Technologies Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |