Correlation Between TaTaTu SpA and BigBen Interactive

Can any of the company-specific risk be diversified away by investing in both TaTaTu SpA and BigBen Interactive 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 TaTaTu SpA and BigBen Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TaTaTu SpA and BigBen Interactive, you can compare the effects of market volatilities on TaTaTu SpA and BigBen Interactive 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 TaTaTu SpA with a short position of BigBen Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of TaTaTu SpA and BigBen Interactive.

Diversification Opportunities for TaTaTu SpA and BigBen Interactive

0.0

Correlation Coefficient

TaTaTu SpA  BigBen Interactive

Pay attention - limited upside

The 3 months correlation between TaTaTu and BigBen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TaTaTu SpA and BigBen Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBen Interactive and TaTaTu SpA 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 TaTaTu SpA are associated (or correlated) with BigBen Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBen Interactive has no effect on the direction of TaTaTu SpA i.e., TaTaTu SpA and BigBen Interactive go up and down completely randomly.

Pair Corralation between TaTaTu SpA and BigBen Interactive

If you would invest  545.00  in TaTaTu SpA on September 29, 2024 and sell it today you would earn a total of  0.00  from holding TaTaTu SpA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

TaTaTu SpA  vs.  BigBen Interactive

TaTaTu SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TaTaTu SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, TaTaTu SpA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

BigBen Interactive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BigBen Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TaTaTu SpA and BigBen Interactive

The main advantage of trading using opposite TaTaTu SpA and BigBen Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TaTaTu SpA position performs unexpectedly, BigBen Interactive 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 BigBen Interactive will offset losses from the drop in BigBen Interactive's long position.

The idea behind TaTaTu SpA and BigBen Interactive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.