Correlation Between TAAT Global and 22nd Century
Can any of the company-specific risk be diversified away by investing in both TAAT Global and 22nd Century 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 TAAT Global and 22nd Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAAT Global Alternatives and 22nd Century Group, you can compare the effects of market volatilities on TAAT Global and 22nd Century 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 TAAT Global with a short position of 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAAT Global and 22nd Century.
Diversification Opportunities for TAAT Global and 22nd Century
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TAAT and 22nd is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TAAT Global Alternatives and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group and TAAT Global 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 TAAT Global Alternatives are associated (or correlated) with 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of TAAT Global i.e., TAAT Global and 22nd Century go up and down completely randomly.
Pair Corralation between TAAT Global and 22nd Century
Assuming the 90 days horizon TAAT Global Alternatives is expected to generate 0.93 times more return on investment than 22nd Century. However, TAAT Global Alternatives is 1.08 times less risky than 22nd Century. It trades about 0.09 of its potential returns per unit of risk. 22nd Century Group is currently generating about -0.01 per unit of risk. If you would invest 12.00 in TAAT Global Alternatives on November 3, 2024 and sell it today you would earn a total of 1.00 from holding TAAT Global Alternatives or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAAT Global Alternatives vs. 22nd Century Group
Performance |
| Timeline |
| TAAT Global Alternatives |
| 22nd Century Group |
TAAT Global and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAAT Global and 22nd Century
The main advantage of trading using opposite TAAT Global and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAAT Global position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century's long position.| TAAT Global vs. Greenlane Holdings | TAAT Global vs. Turning Point Brands | TAAT Global vs. Green Globe International | TAAT Global vs. Kaival Brands Innovations |
| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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