Correlation Between TRADEDOUBLER and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and TSOGO SUN 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 TRADEDOUBLER and TSOGO SUN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and TSOGO SUN GAMING, you can compare the effects of market volatilities on TRADEDOUBLER and TSOGO SUN 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 TRADEDOUBLER with a short position of TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and TSOGO SUN.
Diversification Opportunities for TRADEDOUBLER and TSOGO SUN
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TRADEDOUBLER and TSOGO is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and TSOGO SUN go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and TSOGO SUN
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to under-perform the TSOGO SUN. But the stock apears to be less risky and, when comparing its historical volatility, TRADEDOUBLER AB SK is 2.64 times less risky than TSOGO SUN. The stock trades about -0.01 of its potential returns per unit of risk. The TSOGO SUN GAMING is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 24.00 in TSOGO SUN GAMING on November 3, 2024 and sell it today you would earn a total of 22.00 from holding TSOGO SUN GAMING or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. TSOGO SUN GAMING
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| TSOGO SUN GAMING |
TRADEDOUBLER and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and TSOGO SUN
The main advantage of trading using opposite TRADEDOUBLER and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.| TRADEDOUBLER vs. Spirent Communications plc | TRADEDOUBLER vs. HEMISPHERE EGY | TRADEDOUBLER vs. RETAIL FOOD GROUP | TRADEDOUBLER vs. Cogent Communications Holdings |
| TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. Galaxy Entertainment Group | TSOGO SUN vs. Sands China | TSOGO SUN vs. Entain Plc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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