Correlation Between Graham and Turning Point
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By analyzing existing cross correlation between Graham Holdings 575 and Turning Point Brands, you can compare the effects of market volatilities on Graham and Turning Point 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 Graham with a short position of Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham and Turning Point.
Diversification Opportunities for Graham and Turning Point
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graham and Turning is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings 575 and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands and Graham 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 Graham Holdings 575 are associated (or correlated) with Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of Graham i.e., Graham and Turning Point go up and down completely randomly.
Pair Corralation between Graham and Turning Point
Assuming the 90 days trading horizon Graham Holdings 575 is expected to generate 27.73 times more return on investment than Turning Point. However, Graham is 27.73 times more volatile than Turning Point Brands. It trades about 0.05 of its potential returns per unit of risk. Turning Point Brands is currently generating about 0.13 per unit of risk. If you would invest 9,840 in Graham Holdings 575 on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Graham Holdings 575 or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.04% |
| Values | Daily Returns |
Graham Holdings 575 vs. Turning Point Brands
Performance |
| Timeline |
| Graham Holdings 575 |
| Turning Point Brands |
Graham and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham and Turning Point
The main advantage of trading using opposite Graham and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point's long position.| Graham vs. Turning Point Brands | Graham vs. Vita Coco | Graham vs. Fomento Economico Mexicano | Graham vs. Thai Beverage PCL |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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