Correlation Between TGCC SA and MICRODATA
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By analyzing existing cross correlation between TGCC SA and MICRODATA, you can compare the effects of market volatilities on TGCC SA and MICRODATA 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 TGCC SA with a short position of MICRODATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGCC SA and MICRODATA.
Diversification Opportunities for TGCC SA and MICRODATA
Good diversification
The 3 months correlation between TGCC and MICRODATA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding TGCC SA and MICRODATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRODATA and TGCC SA 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 TGCC SA are associated (or correlated) with MICRODATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRODATA has no effect on the direction of TGCC SA i.e., TGCC SA and MICRODATA go up and down completely randomly.
Pair Corralation between TGCC SA and MICRODATA
Assuming the 90 days trading horizon TGCC SA is expected to generate 0.93 times more return on investment than MICRODATA. However, TGCC SA is 1.07 times less risky than MICRODATA. It trades about 0.18 of its potential returns per unit of risk. MICRODATA is currently generating about 0.03 per unit of risk. If you would invest 12,180 in TGCC SA on September 14, 2024 and sell it today you would earn a total of 35,320 from holding TGCC SA or generate 289.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
TGCC SA vs. MICRODATA
Performance |
| Timeline |
| TGCC SA |
| MICRODATA |
TGCC SA and MICRODATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGCC SA and MICRODATA
The main advantage of trading using opposite TGCC SA and MICRODATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGCC SA position performs unexpectedly, MICRODATA 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 MICRODATA will offset losses from the drop in MICRODATA's long position.The idea behind TGCC SA and MICRODATA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MICRODATA vs. BANK OF AFRICA | MICRODATA vs. TGCC SA | MICRODATA vs. CFG BANK | MICRODATA vs. AGMA LAHLOU TAZI |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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