Correlation Between Tetragon Financial and Impax Asset
Can any of the company-specific risk be diversified away by investing in both Tetragon Financial and Impax Asset 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 Impax Asset 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 Impax Asset Management, you can compare the effects of market volatilities on Tetragon Financial and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tetragon Financial and Impax Asset.
Diversification Opportunities for Tetragon Financial and Impax Asset
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tetragon and Impax is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Tetragon Financial i.e., Tetragon Financial and Impax Asset go up and down completely randomly.
Pair Corralation between Tetragon Financial and Impax Asset
Assuming the 90 days trading horizon Tetragon Financial Group is expected to generate 0.34 times more return on investment than Impax Asset. However, Tetragon Financial Group is 2.98 times less risky than Impax Asset. It trades about 0.13 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.07 per unit of risk. If you would invest 895.00 in Tetragon Financial Group on October 13, 2024 and sell it today you would earn a total of 700.00 from holding Tetragon Financial Group or generate 78.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tetragon Financial Group vs. Impax Asset Management
Performance |
| Timeline |
| Tetragon Financial |
| Impax Asset Management |
Tetragon Financial and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tetragon Financial and Impax Asset
The main advantage of trading using opposite Tetragon Financial and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tetragon Financial position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| Tetragon Financial vs. SupplyMe Capital PLC | Tetragon Financial vs. SM Energy Co | Tetragon Financial vs. FuelCell Energy | Tetragon Financial vs. Grand Vision Media |
| Impax Asset vs. Air Products Chemicals | Impax Asset vs. Futura Medical | Impax Asset vs. Nordea Bank Abp | Impax Asset vs. Tetragon Financial Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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