Correlation Between TransUnion and SGS SA
Can any of the company-specific risk be diversified away by investing in both TransUnion and SGS SA 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 TransUnion and SGS SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransUnion and SGS SA, you can compare the effects of market volatilities on TransUnion and SGS SA 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 TransUnion with a short position of SGS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransUnion and SGS SA.
Diversification Opportunities for TransUnion and SGS SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TransUnion and SGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TransUnion and SGS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGS SA and TransUnion 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 TransUnion are associated (or correlated) with SGS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGS SA has no effect on the direction of TransUnion i.e., TransUnion and SGS SA go up and down completely randomly.
Pair Corralation between TransUnion and SGS SA
Considering the 90-day investment horizon TransUnion is expected to generate 0.71 times more return on investment than SGS SA. However, TransUnion is 1.41 times less risky than SGS SA. It trades about 0.12 of its potential returns per unit of risk. SGS SA is currently generating about 0.03 per unit of risk. If you would invest 7,494 in TransUnion on August 24, 2024 and sell it today you would earn a total of 2,376 from holding TransUnion or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TransUnion vs. SGS SA
Performance |
| Timeline |
| TransUnion |
| SGS SA |
TransUnion and SGS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransUnion and SGS SA
The main advantage of trading using opposite TransUnion and SGS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransUnion position performs unexpectedly, SGS SA 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 SGS SA will offset losses from the drop in SGS SA's long position.| TransUnion vs. Exponent | TransUnion vs. Verisk Analytics | TransUnion vs. FTI Consulting | TransUnion vs. Forrester Research |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |