Correlation Between Trans Global and Bowmo
Can any of the company-specific risk be diversified away by investing in both Trans Global and Bowmo 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 Trans Global and Bowmo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trans Global Grp and Bowmo Inc, you can compare the effects of market volatilities on Trans Global and Bowmo 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 Trans Global with a short position of Bowmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trans Global and Bowmo.
Diversification Opportunities for Trans Global and Bowmo
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trans and Bowmo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Trans Global Grp and Bowmo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowmo Inc and Trans Global 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 Trans Global Grp are associated (or correlated) with Bowmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowmo Inc has no effect on the direction of Trans Global i.e., Trans Global and Bowmo go up and down completely randomly.
Pair Corralation between Trans Global and Bowmo
Given the investment horizon of 90 days Trans Global Grp is expected to generate 2.42 times more return on investment than Bowmo. However, Trans Global is 2.42 times more volatile than Bowmo Inc. It trades about 0.18 of its potential returns per unit of risk. Bowmo Inc is currently generating about -0.16 per unit of risk. If you would invest 0.02 in Trans Global Grp on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Trans Global Grp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Trans Global Grp vs. Bowmo Inc
Performance |
Timeline |
Trans Global Grp |
Bowmo Inc |
Trans Global and Bowmo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trans Global and Bowmo
The main advantage of trading using opposite Trans Global and Bowmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trans Global position performs unexpectedly, Bowmo 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 Bowmo will offset losses from the drop in Bowmo's long position.Trans Global vs. Amazonas Florestal | Trans Global vs. For The Earth | Trans Global vs. Regen BioPharma | Trans Global vs. Green Globe International |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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