Correlation Between TR Property and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both TR Property and Zegona Communications 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 TR Property and Zegona Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TR Property Investment and Zegona Communications Plc, you can compare the effects of market volatilities on TR Property and Zegona Communications 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 TR Property with a short position of Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and Zegona Communications.
Diversification Opportunities for TR Property and Zegona Communications
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TRY and Zegona is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications Plc and TR Property 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 TR Property Investment are associated (or correlated) with Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of TR Property i.e., TR Property and Zegona Communications go up and down completely randomly.
Pair Corralation between TR Property and Zegona Communications
Assuming the 90 days trading horizon TR Property Investment is expected to under-perform the Zegona Communications. But the stock apears to be less risky and, when comparing its historical volatility, TR Property Investment is 2.47 times less risky than Zegona Communications. The stock trades about -0.09 of its potential returns per unit of risk. The Zegona Communications Plc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 32,800 in Zegona Communications Plc on September 4, 2024 and sell it today you would earn a total of 2,400 from holding Zegona Communications Plc or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TR Property Investment vs. Zegona Communications Plc
Performance |
| Timeline |
| TR Property Investment |
| Zegona Communications Plc |
TR Property and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TR Property and Zegona Communications
The main advantage of trading using opposite TR Property and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TR Property position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' long position.| TR Property vs. Monks Investment Trust | TR Property vs. Medical Properties Trust | TR Property vs. Schroders Investment Trusts | TR Property vs. Sealed Air Corp |
| Zegona Communications vs. Games Workshop Group | Zegona Communications vs. AJ Bell plc | Zegona Communications vs. Auto Trader Group | Zegona Communications vs. 4Imprint Group Plc |
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.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |