Correlation Between Turning Point and NOVARTIS
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By analyzing existing cross correlation between Turning Point Brands and NOVARTIS CAPITAL P, you can compare the effects of market volatilities on Turning Point and NOVARTIS 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 NOVARTIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and NOVARTIS.
Diversification Opportunities for Turning Point and NOVARTIS
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turning and NOVARTIS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and NOVARTIS CAPITAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOVARTIS CAPITAL P 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 NOVARTIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOVARTIS CAPITAL P has no effect on the direction of Turning Point i.e., Turning Point and NOVARTIS go up and down completely randomly.
Pair Corralation between Turning Point and NOVARTIS
Considering the 90-day investment horizon Turning Point Brands is expected to under-perform the NOVARTIS. But the stock apears to be less risky and, when comparing its historical volatility, Turning Point Brands is 1.7 times less risky than NOVARTIS. The stock trades about -0.34 of its potential returns per unit of risk. The NOVARTIS CAPITAL P is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,748 in NOVARTIS CAPITAL P on October 11, 2024 and sell it today you would earn a total of 143.00 from holding NOVARTIS CAPITAL P or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Turning Point Brands vs. NOVARTIS CAPITAL P
Performance |
| Timeline |
| Turning Point Brands |
| NOVARTIS CAPITAL P |
Turning Point and NOVARTIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and NOVARTIS
The main advantage of trading using opposite Turning Point and NOVARTIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, NOVARTIS 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 NOVARTIS will offset losses from the drop in NOVARTIS'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 |
| NOVARTIS vs. BRC Inc | NOVARTIS vs. Copa Holdings SA | NOVARTIS vs. Singapore Airlines | NOVARTIS vs. Turning Point Brands |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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