Correlation Between American Diversified and Touchpoint Group

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

By analyzing existing cross correlation between American Diversified Holdings and Touchpoint Group Holdings, you can compare the effects of market volatilities on American Diversified and Touchpoint Group 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 American Diversified with a short position of Touchpoint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Diversified and Touchpoint Group.

Diversification Opportunities for American Diversified and Touchpoint Group

0.0

Correlation Coefficient

American Diversified  Touchpoint Group

Pay attention - limited upside

The 3 months correlation between American and Touchpoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Diversified Holdings and Touchpoint Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchpoint Group Holdings and American Diversified 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 American Diversified Holdings are associated (or correlated) with Touchpoint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchpoint Group Holdings has no effect on the direction of American Diversified i.e., American Diversified and Touchpoint Group go up and down completely randomly.

Pair Corralation between American Diversified and Touchpoint Group

If you would invest (100.00) in Touchpoint Group Holdings on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Touchpoint Group Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

American Diversified Holdings  vs.  Touchpoint Group Holdings

American Diversified

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Diversified Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Touchpoint Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Touchpoint Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Touchpoint Group is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with American Diversified and Touchpoint Group

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

The idea behind American Diversified Holdings and Touchpoint Group Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.