Correlation Between Tencent Music and AMERICAN
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By analyzing existing cross correlation between Tencent Music Entertainment and AMERICAN EXPRESS PANY, you can compare the effects of market volatilities on Tencent Music and AMERICAN 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 Tencent Music with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tencent Music and AMERICAN.
Diversification Opportunities for Tencent Music and AMERICAN
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tencent and AMERICAN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tencent Music Entertainment and AMERICAN EXPRESS PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS PANY and Tencent Music 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 Tencent Music Entertainment are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS PANY has no effect on the direction of Tencent Music i.e., Tencent Music and AMERICAN go up and down completely randomly.
Pair Corralation between Tencent Music and AMERICAN
If you would invest 839.00 in Tencent Music Entertainment on September 14, 2024 and sell it today you would earn a total of 368.00 from holding Tencent Music Entertainment or generate 43.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.2% |
| Values | Daily Returns |
Tencent Music Entertainment vs. AMERICAN EXPRESS PANY
Performance |
| Timeline |
| Tencent Music Entert |
| AMERICAN EXPRESS PANY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tencent Music and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tencent Music and AMERICAN
The main advantage of trading using opposite Tencent Music and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tencent Music position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Tencent Music vs. Locafy | Tencent Music vs. Rail Vision Ltd | Tencent Music vs. Heartbeam Warrant | Tencent Music vs. Iveda Solutions Warrant |
| AMERICAN vs. GameStop Corp | AMERICAN vs. Lifevantage | AMERICAN vs. Vestis | AMERICAN vs. Marfrig Global Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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