Correlation Between Sack Lunch and TransUnion
Can any of the company-specific risk be diversified away by investing in both Sack Lunch and TransUnion 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 Sack Lunch and TransUnion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sack Lunch Productions and TransUnion, you can compare the effects of market volatilities on Sack Lunch and TransUnion 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 Sack Lunch with a short position of TransUnion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sack Lunch and TransUnion.
Diversification Opportunities for Sack Lunch and TransUnion
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sack and TransUnion is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sack Lunch Productions and TransUnion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransUnion and Sack Lunch 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 Sack Lunch Productions are associated (or correlated) with TransUnion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransUnion has no effect on the direction of Sack Lunch i.e., Sack Lunch and TransUnion go up and down completely randomly.
Pair Corralation between Sack Lunch and TransUnion
Given the investment horizon of 90 days Sack Lunch Productions is expected to generate 6.71 times more return on investment than TransUnion. However, Sack Lunch is 6.71 times more volatile than TransUnion. It trades about 0.03 of its potential returns per unit of risk. TransUnion is currently generating about 0.15 per unit of risk. If you would invest 1.30 in Sack Lunch Productions on August 28, 2024 and sell it today you would lose (0.50) from holding Sack Lunch Productions or give up 38.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sack Lunch Productions vs. TransUnion
Performance |
| Timeline |
| Sack Lunch Productions |
| TransUnion |
Sack Lunch and TransUnion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sack Lunch and TransUnion
The main advantage of trading using opposite Sack Lunch and TransUnion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sack Lunch position performs unexpectedly, TransUnion 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 TransUnion will offset losses from the drop in TransUnion's long position.| Sack Lunch vs. Aerius International | Sack Lunch vs. Potash America | Sack Lunch vs. Blue Diamond Ventures | Sack Lunch vs. Daniels Corporate Advisory |
| TransUnion vs. Exponent | TransUnion vs. Verisk Analytics | TransUnion vs. FTI Consulting | TransUnion vs. Forrester Research |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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