Correlation Between TRIPCOM GROUP and FOSTOURGRP EO-0001

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TRIPCOM GROUP and FOSTOURGRP EO-0001 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 TRIPCOM GROUP and FOSTOURGRP EO-0001 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRIPCOM GROUP DL 00125 and FOSTOURGRP EO 0001, you can compare the effects of market volatilities on TRIPCOM GROUP and FOSTOURGRP EO-0001 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 TRIPCOM GROUP with a short position of FOSTOURGRP EO-0001. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRIPCOM GROUP and FOSTOURGRP EO-0001.

Diversification Opportunities for TRIPCOM GROUP and FOSTOURGRP EO-0001

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between TRIPCOM and FOSTOURGRP is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding TRIPCOM GROUP DL 00125 and FOSTOURGRP EO 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOSTOURGRP EO 0001 and TRIPCOM GROUP 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 TRIPCOM GROUP DL 00125 are associated (or correlated) with FOSTOURGRP EO-0001. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOSTOURGRP EO 0001 has no effect on the direction of TRIPCOM GROUP i.e., TRIPCOM GROUP and FOSTOURGRP EO-0001 go up and down completely randomly.

Pair Corralation between TRIPCOM GROUP and FOSTOURGRP EO-0001

Assuming the 90 days trading horizon TRIPCOM GROUP DL 00125 is expected to generate 0.62 times more return on investment than FOSTOURGRP EO-0001. However, TRIPCOM GROUP DL 00125 is 1.63 times less risky than FOSTOURGRP EO-0001. It trades about 0.05 of its potential returns per unit of risk. FOSTOURGRP EO 0001 is currently generating about 0.01 per unit of risk. If you would invest  3,400  in TRIPCOM GROUP DL 00125 on October 4, 2024 and sell it today you would earn a total of  2,746  from holding TRIPCOM GROUP DL 00125 or generate 80.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

TRIPCOM GROUP DL 00125  vs.  FOSTOURGRP EO 0001

 Performance 
       Timeline  
TRIPCOM GROUP DL 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in TRIPCOM GROUP DL 00125 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TRIPCOM GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.
FOSTOURGRP EO 0001 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in FOSTOURGRP EO 0001 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FOSTOURGRP EO-0001 reported solid returns over the last few months and may actually be approaching a breakup point.

TRIPCOM GROUP and FOSTOURGRP EO-0001 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TRIPCOM GROUP and FOSTOURGRP EO-0001

The main advantage of trading using opposite TRIPCOM GROUP and FOSTOURGRP EO-0001 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRIPCOM GROUP position performs unexpectedly, FOSTOURGRP EO-0001 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 FOSTOURGRP EO-0001 will offset losses from the drop in FOSTOURGRP EO-0001's long position.
The idea behind TRIPCOM GROUP DL 00125 and FOSTOURGRP EO 0001 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Money Managers
Screen money managers from public funds and ETFs managed around the world
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Global Correlations
Find global opportunities by holding instruments from different markets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes