Correlation Between SportsHero and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both SportsHero 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 SportsHero and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SportsHero and TTG Fintech, you can compare the effects of market volatilities on SportsHero 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 SportsHero with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SportsHero and TTG Fintech.
Diversification Opportunities for SportsHero and TTG Fintech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SportsHero and TTG is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SportsHero and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and SportsHero 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 SportsHero 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 SportsHero i.e., SportsHero and TTG Fintech go up and down completely randomly.
Pair Corralation between SportsHero and TTG Fintech
Assuming the 90 days trading horizon SportsHero is expected to generate 1.64 times more return on investment than TTG Fintech. However, SportsHero is 1.64 times more volatile than TTG Fintech. It trades about 0.06 of its potential returns per unit of risk. TTG Fintech is currently generating about 0.01 per unit of risk. If you would invest 1.80 in SportsHero on August 25, 2024 and sell it today you would earn a total of 0.10 from holding SportsHero or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SportsHero vs. TTG Fintech
Performance |
| Timeline |
| SportsHero |
| TTG Fintech |
SportsHero and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SportsHero and TTG Fintech
The main advantage of trading using opposite SportsHero and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SportsHero 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.| SportsHero vs. Ecofibre | SportsHero vs. iShares Global Healthcare | SportsHero vs. Adriatic Metals Plc | SportsHero vs. Australian Dairy Farms |
| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. BHP Group Limited | TTG Fintech vs. Rio Tinto | TTG Fintech vs. Macquarie Group Ltd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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