Correlation Between TechnoPro Holdings and GEE
Can any of the company-specific risk be diversified away by investing in both TechnoPro Holdings and GEE 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 TechnoPro Holdings and GEE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnoPro Holdings and GEE Group, you can compare the effects of market volatilities on TechnoPro Holdings and GEE 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 TechnoPro Holdings with a short position of GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnoPro Holdings and GEE.
Diversification Opportunities for TechnoPro Holdings and GEE
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TechnoPro and GEE is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding TechnoPro Holdings and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group and TechnoPro Holdings 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 TechnoPro Holdings are associated (or correlated) with GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of TechnoPro Holdings i.e., TechnoPro Holdings and GEE go up and down completely randomly.
Pair Corralation between TechnoPro Holdings and GEE
Assuming the 90 days horizon TechnoPro Holdings is expected to generate 0.68 times more return on investment than GEE. However, TechnoPro Holdings is 1.47 times less risky than GEE. It trades about -0.05 of its potential returns per unit of risk. GEE Group is currently generating about -0.08 per unit of risk. If you would invest 502.00 in TechnoPro Holdings on September 14, 2024 and sell it today you would lose (132.00) from holding TechnoPro Holdings or give up 26.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
TechnoPro Holdings vs. GEE Group
Performance |
| Timeline |
| TechnoPro Holdings |
| GEE Group |
TechnoPro Holdings and GEE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnoPro Holdings and GEE
The main advantage of trading using opposite TechnoPro Holdings and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnoPro Holdings position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.| TechnoPro Holdings vs. Hire Technologies | TechnoPro Holdings vs. The Caldwell Partners | TechnoPro Holdings vs. Trucept | TechnoPro Holdings vs. Futuris Company |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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