Correlation Between TSOGO SUN and Media

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

By analyzing existing cross correlation between TSOGO SUN GAMING and Media and Games, you can compare the effects of market volatilities on TSOGO SUN and Media 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 TSOGO SUN with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Media.

Diversification Opportunities for TSOGO SUN and Media

0.18

Correlation Coefficient

TSOGO SUN  Media

Average diversification

The 3 months correlation between TSOGO and Media is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and TSOGO SUN 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 TSOGO SUN GAMING are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and Media go up and down completely randomly.

Pair Corralation between TSOGO SUN and Media

Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Media. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 1.77 times less risky than Media. The stock trades about -0.06 of its potential returns per unit of risk. The Media and Games is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  322.00  in Media and Games on September 3, 2024 and sell it today you would earn a total of  19.00  from holding Media and Games or generate 5.9% return on investment over 90 days.

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

TSOGO SUN GAMING  vs.  Media and Games

TSOGO SUN GAMING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TSOGO SUN GAMING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Media and Games

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Media and Games are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Media may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with TSOGO SUN and Media

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

The idea behind TSOGO SUN GAMING and Media and Games 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..