Correlation Between Turning Point and VIACOM
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By analyzing existing cross correlation between Turning Point Brands and VIACOM INC NEW, you can compare the effects of market volatilities on Turning Point and VIACOM 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 VIACOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and VIACOM.
Diversification Opportunities for Turning Point and VIACOM
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turning and VIACOM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and VIACOM INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIACOM INC NEW 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 VIACOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIACOM INC NEW has no effect on the direction of Turning Point i.e., Turning Point and VIACOM go up and down completely randomly.
Pair Corralation between Turning Point and VIACOM
Considering the 90-day investment horizon Turning Point Brands is expected to generate 0.74 times more return on investment than VIACOM. However, Turning Point Brands is 1.36 times less risky than VIACOM. It trades about 0.2 of its potential returns per unit of risk. VIACOM INC NEW is currently generating about -0.01 per unit of risk. If you would invest 2,616 in Turning Point Brands on September 3, 2024 and sell it today you would earn a total of 3,574 from holding Turning Point Brands or generate 136.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.6% |
| Values | Daily Returns |
Turning Point Brands vs. VIACOM INC NEW
Performance |
| Timeline |
| Turning Point Brands |
| VIACOM INC NEW |
Turning Point and VIACOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and VIACOM
The main advantage of trading using opposite Turning Point and VIACOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, VIACOM 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 VIACOM will offset losses from the drop in VIACOM'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 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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