Correlation Between Ticon Freehold and Impact Growth

Can any of the company-specific risk be diversified away by investing in both Ticon Freehold and Impact Growth 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 Ticon Freehold and Impact Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ticon Freehold and and Impact Growth REIT, you can compare the effects of market volatilities on Ticon Freehold and Impact Growth 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 Ticon Freehold with a short position of Impact Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ticon Freehold and Impact Growth.

Diversification Opportunities for Ticon Freehold and Impact Growth

0.88

Correlation Coefficient

Ticon Freehold  Impact Growth

Very poor diversification

The 3 months correlation between Ticon and Impact is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ticon Freehold and and Impact Growth REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Growth REIT and Ticon Freehold 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 Ticon Freehold and are associated (or correlated) with Impact Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Growth REIT has no effect on the direction of Ticon Freehold i.e., Ticon Freehold and Impact Growth go up and down completely randomly.

Pair Corralation between Ticon Freehold and Impact Growth

Assuming the 90 days trading horizon Ticon Freehold and is expected to generate 1.07 times more return on investment than Impact Growth. However, Ticon Freehold is 1.07 times more volatile than Impact Growth REIT. It trades about 0.18 of its potential returns per unit of risk. Impact Growth REIT is currently generating about 0.01 per unit of risk. If you would invest  977.00  in Ticon Freehold and on September 13, 2024 and sell it today you would earn a total of  54.00  from holding Ticon Freehold and or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Ticon Freehold and  vs.  Impact Growth REIT

Ticon Freehold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ticon Freehold and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ticon Freehold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Impact Growth REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impact Growth REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Ticon Freehold and Impact Growth

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

The idea behind Ticon Freehold and and Impact Growth REIT 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.