Correlation Between TTG Fintech and Parkd

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

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

Diversification Opportunities for TTG Fintech and Parkd

-0.46

Correlation Coefficient

TTG Fintech  Parkd

Very good diversification

The 3 months correlation between TTG and Parkd is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Parkd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkd and TTG Fintech 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 TTG Fintech are associated (or correlated) with Parkd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkd has no effect on the direction of TTG Fintech i.e., TTG Fintech and Parkd go up and down completely randomly.

Pair Corralation between TTG Fintech and Parkd

Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Parkd. In addition to that, TTG Fintech is 1.27 times more volatile than Parkd. It trades about -0.01 of its total potential returns per unit of risk. Parkd is currently generating about 0.14 per unit of volatility. If you would invest  2.10  in Parkd on December 20, 2024 and sell it today you would earn a total of  1.40  from holding Parkd or generate 66.67% return on investment over 90 days.

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

TTG Fintech  vs.  Parkd

TTG Fintech

Risk-Adjusted Performance

Very Weak

Over the last 90 days TTG Fintech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Parkd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Parkd are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Parkd unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TTG Fintech and Parkd

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

The idea behind TTG Fintech and Parkd 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.