Correlation Between TPG Telecom and My Foodie

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Can any of the company-specific risk be diversified away by investing in both TPG Telecom and My Foodie 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 TPG Telecom and My Foodie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Telecom and My Foodie Box, you can compare the effects of market volatilities on TPG Telecom and My Foodie 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 TPG Telecom with a short position of My Foodie. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and My Foodie.

Diversification Opportunities for TPG Telecom and My Foodie

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between TPG and MBX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom and My Foodie Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Foodie Box and TPG Telecom 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 TPG Telecom are associated (or correlated) with My Foodie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Foodie Box has no effect on the direction of TPG Telecom i.e., TPG Telecom and My Foodie go up and down completely randomly.

Pair Corralation between TPG Telecom and My Foodie

Assuming the 90 days trading horizon TPG Telecom is expected to generate 0.33 times more return on investment than My Foodie. However, TPG Telecom is 3.05 times less risky than My Foodie. It trades about 0.0 of its potential returns per unit of risk. My Foodie Box is currently generating about -0.06 per unit of risk. If you would invest  472.00  in TPG Telecom on September 3, 2024 and sell it today you would lose (22.00) from holding TPG Telecom or give up 4.66% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TPG Telecom  vs.  My Foodie Box

 Performance 
       Timeline  
TPG Telecom 

Risk-Adjusted Performance

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Over the last 90 days TPG Telecom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
My Foodie Box 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days My Foodie Box has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, My Foodie is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TPG Telecom and My Foodie Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TPG Telecom and My Foodie

The main advantage of trading using opposite TPG Telecom and My Foodie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG Telecom position performs unexpectedly, My Foodie 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 My Foodie will offset losses from the drop in My Foodie's long position.
The idea behind TPG Telecom and My Foodie Box pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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