Correlation Between Touchpoint Group and Astra Veda
Can any of the company-specific risk be diversified away by investing in both Touchpoint Group and Astra Veda 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 Touchpoint Group and Astra Veda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchpoint Group Holdings and Astra Veda, you can compare the effects of market volatilities on Touchpoint Group and Astra Veda 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 Touchpoint Group with a short position of Astra Veda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchpoint Group and Astra Veda.
Diversification Opportunities for Touchpoint Group and Astra Veda
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Touchpoint and Astra is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Touchpoint Group Holdings and Astra Veda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Veda and Touchpoint Group 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 Touchpoint Group Holdings are associated (or correlated) with Astra Veda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Veda has no effect on the direction of Touchpoint Group i.e., Touchpoint Group and Astra Veda go up and down completely randomly.
Pair Corralation between Touchpoint Group and Astra Veda
Given the investment horizon of 90 days Touchpoint Group Holdings is expected to generate 2.77 times more return on investment than Astra Veda. However, Touchpoint Group is 2.77 times more volatile than Astra Veda. It trades about 0.06 of its potential returns per unit of risk. Astra Veda is currently generating about 0.01 per unit of risk. If you would invest 0.02 in Touchpoint Group Holdings on August 28, 2024 and sell it today you would lose (0.01) from holding Touchpoint Group Holdings or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.84% |
| Values | Daily Returns |
Touchpoint Group Holdings vs. Astra Veda
Performance |
| Timeline |
| Touchpoint Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra Veda |
Touchpoint Group and Astra Veda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchpoint Group and Astra Veda
The main advantage of trading using opposite Touchpoint Group and Astra Veda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchpoint Group position performs unexpectedly, Astra Veda 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 Astra Veda will offset losses from the drop in Astra Veda's long position.| Touchpoint Group vs. Protek Capital | Touchpoint Group vs. On4 Communications | Touchpoint Group vs. Bowmo Inc | Touchpoint Group vs. BHPA Inc |
| Astra Veda vs. Majic Wheels Corp | Astra Veda vs. Legends Business Grp | Astra Veda vs. TonnerOne World Holdings | Astra Veda vs. Fernhill Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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