Correlation Between Touchpoint Group and Auddia
Can any of the company-specific risk be diversified away by investing in both Touchpoint Group and Auddia 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 Auddia 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 Auddia Inc, you can compare the effects of market volatilities on Touchpoint Group and Auddia 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 Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchpoint Group and Auddia.
Diversification Opportunities for Touchpoint Group and Auddia
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Touchpoint and Auddia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Touchpoint Group Holdings and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc 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 Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Touchpoint Group i.e., Touchpoint Group and Auddia go up and down completely randomly.
Pair Corralation between Touchpoint Group and Auddia
Given the investment horizon of 90 days Touchpoint Group is expected to generate 2.79 times less return on investment than Auddia. But when comparing it to its historical volatility, Touchpoint Group Holdings is 3.22 times less risky than Auddia. It trades about 0.15 of its potential returns per unit of risk. Auddia Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Auddia Inc on August 28, 2024 and sell it today you would lose (15.26) from holding Auddia Inc or give up 84.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.18% |
| Values | Daily Returns |
Touchpoint Group Holdings vs. Auddia Inc
Performance |
| Timeline |
| Touchpoint Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Auddia Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Touchpoint Group and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchpoint Group and Auddia
The main advantage of trading using opposite Touchpoint Group and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchpoint Group position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| Touchpoint Group vs. Protek Capital | Touchpoint Group vs. On4 Communications | Touchpoint Group vs. Bowmo Inc | Touchpoint Group vs. BHPA Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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