Correlation Between Argentum and Tingo

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

By analyzing existing cross correlation between Argentum 47 and Tingo Inc, you can compare the effects of market volatilities on Argentum and Tingo 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 Argentum with a short position of Tingo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argentum and Tingo.

Diversification Opportunities for Argentum and Tingo

0.0

Correlation Coefficient

Argentum  Tingo

Pay attention - limited upside

The 3 months correlation between Argentum and Tingo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argentum 47 and Tingo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingo Inc and Argentum 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 Argentum 47 are associated (or correlated) with Tingo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingo Inc has no effect on the direction of Argentum i.e., Argentum and Tingo go up and down completely randomly.

Pair Corralation between Argentum and Tingo

If you would invest  0.89  in Argentum 47 on October 7, 2024 and sell it today you would lose (0.42) from holding Argentum 47 or give up 47.19% of portfolio value over 90 days.

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

Argentum 47  vs.  Tingo Inc

Argentum 47

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Argentum 47 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Argentum reported solid returns over the last few months and may actually be approaching a breakup point.

Tingo Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tingo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tingo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Argentum and Tingo

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

The idea behind Argentum 47 and Tingo Inc 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..