Correlation Between Beauty Health and TransGlobe Energy
Can any of the company-specific risk be diversified away by investing in both Beauty Health and TransGlobe Energy 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 Beauty Health and TransGlobe Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beauty Health Co and TransGlobe Energy, you can compare the effects of market volatilities on Beauty Health and TransGlobe Energy 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 Beauty Health with a short position of TransGlobe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beauty Health and TransGlobe Energy.
Diversification Opportunities for Beauty Health and TransGlobe Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beauty and TransGlobe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beauty Health Co and TransGlobe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransGlobe Energy and Beauty Health 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 Beauty Health Co are associated (or correlated) with TransGlobe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransGlobe Energy has no effect on the direction of Beauty Health i.e., Beauty Health and TransGlobe Energy go up and down completely randomly.
Pair Corralation between Beauty Health and TransGlobe Energy
If you would invest (100.00) in TransGlobe Energy on September 13, 2024 and sell it today you would earn a total of 100.00 from holding TransGlobe Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Beauty Health Co vs. TransGlobe Energy
Performance |
| Timeline |
| Beauty Health |
| TransGlobe Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beauty Health and TransGlobe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beauty Health and TransGlobe Energy
The main advantage of trading using opposite Beauty Health and TransGlobe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beauty Health position performs unexpectedly, TransGlobe Energy 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 TransGlobe Energy will offset losses from the drop in TransGlobe Energy's long position.| Beauty Health vs. Clear Secure | Beauty Health vs. GXO Logistics | Beauty Health vs. Doximity | Beauty Health vs. Figs Inc |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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