Correlation Between Turning Point and APACHE
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By analyzing existing cross correlation between Turning Point Brands and APACHE P 525, you can compare the effects of market volatilities on Turning Point and APACHE 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 Turning Point with a short position of APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and APACHE.
Diversification Opportunities for Turning Point and APACHE
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turning and APACHE is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and APACHE P 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 525 and Turning Point 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 Turning Point Brands are associated (or correlated) with APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 525 has no effect on the direction of Turning Point i.e., Turning Point and APACHE go up and down completely randomly.
Pair Corralation between Turning Point and APACHE
Considering the 90-day investment horizon Turning Point Brands is expected to generate 1.39 times more return on investment than APACHE. However, Turning Point is 1.39 times more volatile than APACHE P 525. It trades about 0.61 of its potential returns per unit of risk. APACHE P 525 is currently generating about -0.21 per unit of risk. If you would invest 4,633 in Turning Point Brands on August 25, 2024 and sell it today you would earn a total of 1,632 from holding Turning Point Brands or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
Turning Point Brands vs. APACHE P 525
Performance |
| Timeline |
| Turning Point Brands |
| APACHE P 525 |
Turning Point and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and APACHE
The main advantage of trading using opposite Turning Point and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
| APACHE vs. Nabors Industries | APACHE vs. Turning Point Brands | APACHE vs. Molson Coors Brewing | APACHE vs. AKITA Drilling |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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