Correlation Between T2 Metals and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both T2 Metals and Senvest Capital 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 T2 Metals and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T2 Metals Corp and Senvest Capital, you can compare the effects of market volatilities on T2 Metals and Senvest Capital 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 T2 Metals with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of T2 Metals and Senvest Capital.
Diversification Opportunities for T2 Metals and Senvest Capital
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TWO and Senvest is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding T2 Metals Corp and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and T2 Metals 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 T2 Metals Corp are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of T2 Metals i.e., T2 Metals and Senvest Capital go up and down completely randomly.
Pair Corralation between T2 Metals and Senvest Capital
Assuming the 90 days horizon T2 Metals Corp is expected to generate 5.39 times more return on investment than Senvest Capital. However, T2 Metals is 5.39 times more volatile than Senvest Capital. It trades about 0.06 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.07 per unit of risk. If you would invest 13.00 in T2 Metals Corp on October 17, 2024 and sell it today you would earn a total of 8.00 from holding T2 Metals Corp or generate 61.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T2 Metals Corp vs. Senvest Capital
Performance |
| Timeline |
| T2 Metals Corp |
| Senvest Capital |
T2 Metals and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T2 Metals and Senvest Capital
The main advantage of trading using opposite T2 Metals and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T2 Metals position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| T2 Metals vs. DRI Healthcare Trust | T2 Metals vs. Reliq Health Technologies | T2 Metals vs. XXIX Metal Corp | T2 Metals vs. Sun Peak Metals |
| Senvest Capital vs. Gfl Environmental Holdings | Senvest Capital vs. DIRTT Environmental Solutions | Senvest Capital vs. Canadian Utilities Limited | Senvest Capital vs. T2 Metals Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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