Correlation Between Tetragon Financial and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both Tetragon Financial and Advanced Medical 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 Tetragon Financial and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tetragon Financial Group and Advanced Medical Solutions, you can compare the effects of market volatilities on Tetragon Financial and Advanced Medical 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 Tetragon Financial with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tetragon Financial and Advanced Medical.
Diversification Opportunities for Tetragon Financial and Advanced Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tetragon and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and Tetragon Financial 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 Tetragon Financial Group are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of Tetragon Financial i.e., Tetragon Financial and Advanced Medical go up and down completely randomly.
Pair Corralation between Tetragon Financial and Advanced Medical
Assuming the 90 days trading horizon Tetragon Financial Group is expected to generate 0.51 times more return on investment than Advanced Medical. However, Tetragon Financial Group is 1.96 times less risky than Advanced Medical. It trades about 0.4 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.1 per unit of risk. If you would invest 1,410 in Tetragon Financial Group on October 25, 2024 and sell it today you would earn a total of 220.00 from holding Tetragon Financial Group or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tetragon Financial Group vs. Advanced Medical Solutions
Performance |
| Timeline |
| Tetragon Financial |
| Advanced Medical Sol |
Tetragon Financial and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tetragon Financial and Advanced Medical
The main advantage of trading using opposite Tetragon Financial and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tetragon Financial position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| Tetragon Financial vs. Griffin Mining | Tetragon Financial vs. Pan American Silver | Tetragon Financial vs. Summit Materials Cl | Tetragon Financial vs. Atalaya Mining |
| Advanced Medical vs. SupplyMe Capital PLC | Advanced Medical vs. SM Energy Co | Advanced Medical vs. FuelCell Energy | Advanced Medical vs. Grand Vision Media |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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