Correlation Between TCJH Old and Magic Empire
Can any of the company-specific risk be diversified away by investing in both TCJH Old and Magic Empire 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 TCJH Old and Magic Empire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TCJH Old and Magic Empire Global, you can compare the effects of market volatilities on TCJH Old and Magic Empire 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 TCJH Old with a short position of Magic Empire. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCJH Old and Magic Empire.
Diversification Opportunities for TCJH Old and Magic Empire
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TCJH and Magic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding TCJH Old and Magic Empire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Empire Global and TCJH Old 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 TCJH Old are associated (or correlated) with Magic Empire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Empire Global has no effect on the direction of TCJH Old i.e., TCJH Old and Magic Empire go up and down completely randomly.
Pair Corralation between TCJH Old and Magic Empire
If you would invest 52.00 in Magic Empire Global on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Magic Empire Global or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
TCJH Old vs. Magic Empire Global
Performance |
| Timeline |
| TCJH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Magic Empire Global |
TCJH Old and Magic Empire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TCJH Old and Magic Empire
The main advantage of trading using opposite TCJH Old and Magic Empire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCJH Old position performs unexpectedly, Magic Empire 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 Magic Empire will offset losses from the drop in Magic Empire's long position.| TCJH Old vs. Harmony Gold Mining | TCJH Old vs. Saia Inc | TCJH Old vs. Mesa Air Group | TCJH Old vs. Parker Hannifin |
| Magic Empire vs. Netcapital | Magic Empire vs. Applied Digital | Magic Empire vs. Zhong Yang Financial | Magic Empire vs. Mercurity Fintech Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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