Correlation Between TG Therapeutics and Global Partners
Can any of the company-specific risk be diversified away by investing in both TG Therapeutics and Global Partners 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 TG Therapeutics and Global Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TG Therapeutics and Global Partners LP, you can compare the effects of market volatilities on TG Therapeutics and Global Partners 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 TG Therapeutics with a short position of Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of TG Therapeutics and Global Partners.
Diversification Opportunities for TG Therapeutics and Global Partners
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TGTX and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding TG Therapeutics and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners LP and TG Therapeutics 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 TG Therapeutics are associated (or correlated) with Global Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of TG Therapeutics i.e., TG Therapeutics and Global Partners go up and down completely randomly.
Pair Corralation between TG Therapeutics and Global Partners
Given the investment horizon of 90 days TG Therapeutics is expected to generate 35.71 times more return on investment than Global Partners. However, TG Therapeutics is 35.71 times more volatile than Global Partners LP. It trades about 0.24 of its potential returns per unit of risk. Global Partners LP is currently generating about 0.16 per unit of risk. If you would invest 3,225 in TG Therapeutics on December 10, 2024 and sell it today you would earn a total of 698.00 from holding TG Therapeutics or generate 21.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TG Therapeutics vs. Global Partners LP
Performance |
| Timeline |
| TG Therapeutics |
| Global Partners LP |
TG Therapeutics and Global Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TG Therapeutics and Global Partners
The main advantage of trading using opposite TG Therapeutics and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TG Therapeutics position performs unexpectedly, Global Partners 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 Global Partners will offset losses from the drop in Global Partners' long position.| TG Therapeutics vs. Madrigal Pharmaceuticals | TG Therapeutics vs. Terns Pharmaceuticals | TG Therapeutics vs. Hepion Pharmaceuticals | TG Therapeutics vs. Exelixis |
| Global Partners vs. Electronic Arts | Global Partners vs. Allient | Global Partners vs. Asure Software | Global Partners vs. ServiceNow |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |