Correlation Between Tian Ruixiang and TWFG,

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

By analyzing existing cross correlation between Tian Ruixiang Holdings and TWFG, Class A, you can compare the effects of market volatilities on Tian Ruixiang and TWFG, 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 Tian Ruixiang with a short position of TWFG,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tian Ruixiang and TWFG,.

Diversification Opportunities for Tian Ruixiang and TWFG,

-0.38

Correlation Coefficient

Tian Ruixiang  TWFG,

Very good diversification

The 3 months correlation between Tian and TWFG, is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tian Ruixiang Holdings and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A and Tian Ruixiang 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 Tian Ruixiang Holdings are associated (or correlated) with TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Tian Ruixiang i.e., Tian Ruixiang and TWFG, go up and down completely randomly.

Pair Corralation between Tian Ruixiang and TWFG,

Given the investment horizon of 90 days Tian Ruixiang Holdings is expected to under-perform the TWFG,. In addition to that, Tian Ruixiang is 1.68 times more volatile than TWFG, Class A. It trades about -0.05 of its total potential returns per unit of risk. TWFG, Class A is currently generating about 0.01 per unit of volatility. If you would invest  2,782  in TWFG, Class A on September 20, 2024 and sell it today you would earn a total of  2.00  from holding TWFG, Class A or generate 0.07% return on investment over 90 days.

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

Tian Ruixiang Holdings  vs.  TWFG, Class A

Tian Ruixiang Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tian Ruixiang Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TWFG, Class A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, TWFG, is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tian Ruixiang and TWFG,

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

The idea behind Tian Ruixiang Holdings and TWFG, Class A 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 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.