Correlation Between Tangiamo Touch and Evolution
Can any of the company-specific risk be diversified away by investing in both Tangiamo Touch and Evolution 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 Tangiamo Touch and Evolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tangiamo Touch Technology and Evolution AB, you can compare the effects of market volatilities on Tangiamo Touch and Evolution 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 Tangiamo Touch with a short position of Evolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangiamo Touch and Evolution.
Diversification Opportunities for Tangiamo Touch and Evolution
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tangiamo and Evolution is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tangiamo Touch Technology and Evolution AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution AB and Tangiamo Touch 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 Tangiamo Touch Technology are associated (or correlated) with Evolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution AB has no effect on the direction of Tangiamo Touch i.e., Tangiamo Touch and Evolution go up and down completely randomly.
Pair Corralation between Tangiamo Touch and Evolution
Assuming the 90 days trading horizon Tangiamo Touch Technology is expected to generate 3.26 times more return on investment than Evolution. However, Tangiamo Touch is 3.26 times more volatile than Evolution AB. It trades about 0.1 of its potential returns per unit of risk. Evolution AB is currently generating about -0.15 per unit of risk. If you would invest 157.00 in Tangiamo Touch Technology on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Tangiamo Touch Technology or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 23.53% |
| Values | Daily Returns |
Tangiamo Touch Technology vs. Evolution AB
Performance |
| Timeline |
| Tangiamo Touch Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Evolution AB |
Tangiamo Touch and Evolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangiamo Touch and Evolution
The main advantage of trading using opposite Tangiamo Touch and Evolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangiamo Touch position performs unexpectedly, Evolution 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 Evolution will offset losses from the drop in Evolution's long position.| Tangiamo Touch vs. Evolution AB | Tangiamo Touch vs. Embracer Group AB | Tangiamo Touch vs. Betsson AB | Tangiamo Touch vs. Catena Media plc |
| Evolution vs. Embracer Group AB | Evolution vs. Sinch AB | Evolution vs. Kambi Group PLC | Evolution vs. Samhllsbyggnadsbolaget i Norden |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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