Correlation Between TTG Fintech and Energy Technologies
Can any of the company-specific risk be diversified away by investing in both TTG Fintech and Energy Technologies 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 TTG Fintech and Energy Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and Energy Technologies Limited, you can compare the effects of market volatilities on TTG Fintech and Energy Technologies 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 TTG Fintech with a short position of Energy Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and Energy Technologies.
Diversification Opportunities for TTG Fintech and Energy Technologies
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TTG and Energy is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Energy Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Technologies and TTG Fintech 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 TTG Fintech are associated (or correlated) with Energy Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Technologies has no effect on the direction of TTG Fintech i.e., TTG Fintech and Energy Technologies go up and down completely randomly.
Pair Corralation between TTG Fintech and Energy Technologies
Assuming the 90 days trading horizon TTG Fintech is expected to generate 2.8 times more return on investment than Energy Technologies. However, TTG Fintech is 2.8 times more volatile than Energy Technologies Limited. It trades about 0.07 of its potential returns per unit of risk. Energy Technologies Limited is currently generating about -0.06 per unit of risk. If you would invest 0.60 in TTG Fintech on September 25, 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 | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TTG Fintech vs. Energy Technologies Limited
Performance |
Timeline |
TTG Fintech |
Energy Technologies |
TTG Fintech and Energy Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TTG Fintech and Energy Technologies
The main advantage of trading using opposite TTG Fintech and Energy Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech position performs unexpectedly, Energy Technologies 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 Energy Technologies will offset losses from the drop in Energy Technologies' long position.TTG Fintech vs. Kkr Credit Income | TTG Fintech vs. Pioneer Credit | TTG Fintech vs. Bell Financial Group | TTG Fintech vs. Galena Mining |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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