Correlation Between Tangiamo Touch and Mavshack Publ

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

By analyzing existing cross correlation between Tangiamo Touch Technology and Mavshack publ AB, you can compare the effects of market volatilities on Tangiamo Touch and Mavshack Publ 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 Tangiamo Touch with a short position of Mavshack Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangiamo Touch and Mavshack Publ.

Diversification Opportunities for Tangiamo Touch and Mavshack Publ

0.34

Correlation Coefficient

Tangiamo Touch  Mavshack Publ

Weak diversification

The 3 months correlation between Tangiamo and Mavshack is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tangiamo Touch Technology and Mavshack publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavshack publ AB and Tangiamo Touch 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 Tangiamo Touch Technology are associated (or correlated) with Mavshack Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavshack publ AB has no effect on the direction of Tangiamo Touch i.e., Tangiamo Touch and Mavshack Publ go up and down completely randomly.

Pair Corralation between Tangiamo Touch and Mavshack Publ

Assuming the 90 days trading horizon Tangiamo Touch Technology is expected to generate 1.99 times more return on investment than Mavshack Publ. However, Tangiamo Touch is 1.99 times more volatile than Mavshack publ AB. It trades about -0.01 of its potential returns per unit of risk. Mavshack publ AB is currently generating about -0.25 per unit of risk. If you would invest  381.00  in Tangiamo Touch Technology on September 16, 2024 and sell it today you would lose (209.00) from holding Tangiamo Touch Technology or give up 54.86% of portfolio value over 90 days.

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

Tangiamo Touch Technology  vs.  Mavshack publ AB

Tangiamo Touch Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tangiamo Touch Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tangiamo Touch is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Mavshack publ AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mavshack publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Tangiamo Touch and Mavshack Publ

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

The idea behind Tangiamo Touch Technology and Mavshack publ AB 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.