Correlation Between TT Electronics and Socit Gnrale

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

By analyzing existing cross correlation between TT Electronics PLC and Socit Gnrale Socit, you can compare the effects of market volatilities on TT Electronics and Socit Gnrale 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 TT Electronics with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of TT Electronics and Socit Gnrale.

Diversification Opportunities for TT Electronics and Socit Gnrale

-0.35

Correlation Coefficient

TT Electronics  Socit Gnrale

Very good diversification

The 3 months correlation between 7TT and Socit is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding TT Electronics PLC and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and TT Electronics 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 TT Electronics PLC are associated (or correlated) with Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of TT Electronics i.e., TT Electronics and Socit Gnrale go up and down completely randomly.

Pair Corralation between TT Electronics and Socit Gnrale

Assuming the 90 days trading horizon TT Electronics PLC is expected to under-perform the Socit Gnrale. In addition to that, TT Electronics is 1.26 times more volatile than Socit Gnrale Socit. It trades about -0.54 of its total potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.4 per unit of volatility. If you would invest  2,679  in Socit Gnrale Socit on October 27, 2024 and sell it today you would earn a total of  329.00  from holding Socit Gnrale Socit or generate 12.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

TT Electronics PLC  vs.  Socit Gnrale Socit

TT Electronics PLC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TT Electronics PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, TT Electronics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Socit Gnrale Socit

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Socit Gnrale Socit are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Socit Gnrale unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TT Electronics and Socit Gnrale

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

The idea behind TT Electronics PLC and Socit Gnrale Socit 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.