Correlation Between Westpac Banking and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Westpac Banking and TTG Fintech 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 Westpac Banking and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westpac Banking and TTG Fintech, you can compare the effects of market volatilities on Westpac Banking and TTG Fintech 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 Westpac Banking with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westpac Banking and TTG Fintech.
Diversification Opportunities for Westpac Banking and TTG Fintech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westpac and TTG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westpac Banking and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Westpac Banking 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 Westpac Banking are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Westpac Banking i.e., Westpac Banking and TTG Fintech go up and down completely randomly.
Pair Corralation between Westpac Banking and TTG Fintech
If you would invest 0.60 in TTG Fintech on November 2, 2024 and sell it today you would earn a total of 0.10 from holding TTG Fintech or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
Westpac Banking vs. TTG Fintech
Performance |
| Timeline |
| Westpac Banking |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TTG Fintech |
Westpac Banking and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westpac Banking and TTG Fintech
The main advantage of trading using opposite Westpac Banking and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westpac Banking position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Westpac Banking vs. Epsilon Healthcare | Westpac Banking vs. Autosports Group | Westpac Banking vs. Vitura Health Limited | Westpac Banking vs. Queste Communications |
| TTG Fintech vs. Charter Hall Retail | TTG Fintech vs. Retail Food Group | TTG Fintech vs. Sports Entertainment Group | TTG Fintech vs. Computershare |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |