Correlation Between Tiger Brands and Libstar Holdings
Can any of the company-specific risk be diversified away by investing in both Tiger Brands and Libstar 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 Tiger Brands and Libstar Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiger Brands and Libstar Holdings, you can compare the effects of market volatilities on Tiger Brands and Libstar 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 Tiger Brands with a short position of Libstar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiger Brands and Libstar Holdings.
Diversification Opportunities for Tiger Brands and Libstar Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tiger and Libstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiger Brands and Libstar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libstar Holdings and Tiger Brands 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 Tiger Brands are associated (or correlated) with Libstar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libstar Holdings has no effect on the direction of Tiger Brands i.e., Tiger Brands and Libstar Holdings go up and down completely randomly.
Pair Corralation between Tiger Brands and Libstar Holdings
If you would invest (100.00) in Libstar Holdings on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Libstar Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiger Brands vs. Libstar Holdings
Performance |
| Timeline |
| Tiger Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Libstar Holdings |
Tiger Brands and Libstar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiger Brands and Libstar Holdings
The main advantage of trading using opposite Tiger Brands and Libstar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiger Brands position performs unexpectedly, Libstar 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 Libstar Holdings will offset losses from the drop in Libstar Holdings' long position.| Tiger Brands vs. HomeChoice Investments | Tiger Brands vs. Deneb Investments | Tiger Brands vs. Brimstone Investment | Tiger Brands vs. Safari Investments RSA |
| Libstar Holdings vs. Harmony Gold Mining | Libstar Holdings vs. Reinet Investments SCA | Libstar Holdings vs. We Buy Cars | Libstar Holdings vs. Frontier Transport Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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