Correlation Between Weibo Corp and TransGlobe Energy
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and TransGlobe Energy 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 Weibo Corp and TransGlobe Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and TransGlobe Energy, you can compare the effects of market volatilities on Weibo Corp and TransGlobe Energy 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 Weibo Corp with a short position of TransGlobe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and TransGlobe Energy.
Diversification Opportunities for Weibo Corp and TransGlobe Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weibo and TransGlobe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and TransGlobe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransGlobe Energy and Weibo Corp 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 Weibo Corp are associated (or correlated) with TransGlobe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransGlobe Energy has no effect on the direction of Weibo Corp i.e., Weibo Corp and TransGlobe Energy go up and down completely randomly.
Pair Corralation between Weibo Corp and TransGlobe Energy
If you would invest 819.00 in Weibo Corp on September 14, 2024 and sell it today you would earn a total of 227.00 from holding Weibo Corp or generate 27.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Weibo Corp vs. TransGlobe Energy
Performance |
| Timeline |
| Weibo Corp |
| TransGlobe Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weibo Corp and TransGlobe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and TransGlobe Energy
The main advantage of trading using opposite Weibo Corp and TransGlobe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, TransGlobe Energy 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 TransGlobe Energy will offset losses from the drop in TransGlobe Energy's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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