Correlation Between TSOGO SUN and Ming Le

Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and Ming Le 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 Ming Le 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 Ming Le Sports, you can compare the effects of market volatilities on TSOGO SUN and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Ming Le.

Diversification Opportunities for TSOGO SUN and Ming Le

-0.48

Correlation Coefficient

TSOGO SUN  Ming Le

Very good diversification

The 3 months correlation between TSOGO and Ming is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports 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 Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and Ming Le go up and down completely randomly.

Pair Corralation between TSOGO SUN and Ming Le

Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Ming Le. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 2.33 times less risky than Ming Le. The stock trades about -0.03 of its potential returns per unit of risk. The Ming Le Sports is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  109.00  in Ming Le Sports on September 5, 2024 and sell it today you would earn a total of  30.00  from holding Ming Le Sports or generate 27.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

TSOGO SUN GAMING  vs.  Ming Le Sports

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 nearly stable basic indicators, TSOGO SUN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ming Le Sports

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ming Le Sports are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Ming Le unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TSOGO SUN and Ming Le

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

The idea behind TSOGO SUN GAMING and Ming Le Sports 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..