Correlation Between Sharing Services and TDH Holdings
Can any of the company-specific risk be diversified away by investing in both Sharing Services and TDH Holdings 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 Sharing Services and TDH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharing Services Global and TDH Holdings, you can compare the effects of market volatilities on Sharing Services and TDH Holdings 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 Sharing Services with a short position of TDH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharing Services and TDH Holdings.
Diversification Opportunities for Sharing Services and TDH Holdings
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharing and TDH is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sharing Services Global and TDH Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDH Holdings and Sharing Services 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 Sharing Services Global are associated (or correlated) with TDH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDH Holdings has no effect on the direction of Sharing Services i.e., Sharing Services and TDH Holdings go up and down completely randomly.
Pair Corralation between Sharing Services and TDH Holdings
Given the investment horizon of 90 days Sharing Services Global is expected to generate 7.29 times more return on investment than TDH Holdings. However, Sharing Services is 7.29 times more volatile than TDH Holdings. It trades about 0.29 of its potential returns per unit of risk. TDH Holdings is currently generating about -0.18 per unit of risk. If you would invest 18.00 in Sharing Services Global on August 27, 2024 and sell it today you would earn a total of 17.00 from holding Sharing Services Global or generate 94.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharing Services Global vs. TDH Holdings
Performance |
| Timeline |
| Sharing Services Global |
| TDH Holdings |
Sharing Services and TDH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharing Services and TDH Holdings
The main advantage of trading using opposite Sharing Services and TDH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharing Services position performs unexpectedly, TDH Holdings 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 TDH Holdings will offset losses from the drop in TDH Holdings' long position.| Sharing Services vs. Seneca Foods Corp | Sharing Services vs. Bridgford Foods | Sharing Services vs. J J Snack | Sharing Services vs. Central Garden Pet |
| TDH Holdings vs. Bit Origin | TDH Holdings vs. Laird Superfood | TDH Holdings vs. Planet Green Holdings | TDH Holdings vs. Stryve Foods |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |