Correlation Between Balincan USA and Touchpoint Group

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

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

Diversification Opportunities for Balincan USA and Touchpoint Group

0.24

Correlation Coefficient

Balincan USA  Touchpoint Group

Modest diversification

The 3 months correlation between Balincan and Touchpoint is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Balincan USA 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 Balincan USA 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 Balincan USA 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 Balincan USA i.e., Balincan USA and Touchpoint Group go up and down completely randomly.

Pair Corralation between Balincan USA and Touchpoint Group

If you would invest  0.01  in Touchpoint Group Holdings on September 7, 2024 and sell it today you would earn a total of  0.00  from holding Touchpoint Group Holdings or generate 0.0% return on investment over 90 days.

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

Balincan USA  vs.  Touchpoint Group Holdings

Balincan USA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Balincan USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Balincan USA is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Touchpoint Group Holdings

Risk-Adjusted Performance

0 of 100

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 Balincan USA and Touchpoint Group

The main advantage of trading using opposite Balincan USA and Touchpoint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balincan USA 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 Balincan USA 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.