Correlation Between Tigers Realm and Global Health
Can any of the company-specific risk be diversified away by investing in both Tigers Realm and Global Health 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 Tigers Realm and Global Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigers Realm Coal and Global Health, you can compare the effects of market volatilities on Tigers Realm and Global Health 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 Tigers Realm with a short position of Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigers Realm and Global Health.
Diversification Opportunities for Tigers Realm and Global Health
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tigers and Global is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tigers Realm Coal and Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health and Tigers Realm 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 Tigers Realm Coal are associated (or correlated) with Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health has no effect on the direction of Tigers Realm i.e., Tigers Realm and Global Health go up and down completely randomly.
Pair Corralation between Tigers Realm and Global Health
Assuming the 90 days trading horizon Tigers Realm Coal is expected to generate 3.46 times more return on investment than Global Health. However, Tigers Realm is 3.46 times more volatile than Global Health. It trades about 0.04 of its potential returns per unit of risk. Global Health is currently generating about -0.12 per unit of risk. If you would invest 0.30 in Tigers Realm Coal on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Tigers Realm Coal 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 |
Tigers Realm Coal vs. Global Health
Performance |
| Timeline |
| Tigers Realm Coal |
| Global Health |
Tigers Realm and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigers Realm and Global Health
The main advantage of trading using opposite Tigers Realm and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigers Realm position performs unexpectedly, Global Health 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 Health will offset losses from the drop in Global Health's long position.| Tigers Realm vs. Ora Banda Mining | Tigers Realm vs. MetalsGrove Mining | Tigers Realm vs. Truscott Mining Corp | Tigers Realm vs. Sandon Capital Investments |
| Global Health vs. Sandon Capital Investments | Global Health vs. REGAL ASIAN INVESTMENTS | Global Health vs. Hudson Investment Group | Global Health vs. MFF Capital Investments |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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