Correlation Between TTG Fintech and Sky Metals

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

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

Diversification Opportunities for TTG Fintech and Sky Metals

0.05

Correlation Coefficient

TTG Fintech  Sky Metals

Significant diversification

The 3 months correlation between TTG and Sky is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Sky Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Metals 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 Sky Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Metals has no effect on the direction of TTG Fintech i.e., TTG Fintech and Sky Metals go up and down completely randomly.

Pair Corralation between TTG Fintech and Sky Metals

Assuming the 90 days trading horizon TTG Fintech is expected to generate 1.24 times less return on investment than Sky Metals. In addition to that, TTG Fintech is 2.42 times more volatile than Sky Metals. It trades about 0.02 of its total potential returns per unit of risk. Sky Metals is currently generating about 0.06 per unit of volatility. If you would invest  5.20  in Sky Metals on October 20, 2024 and sell it today you would earn a total of  0.10  from holding Sky Metals or generate 1.92% return on investment over 90 days.

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

TTG Fintech  vs.  Sky Metals

TTG Fintech

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TTG Fintech are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, TTG Fintech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Sky Metals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with TTG Fintech and Sky Metals

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

The idea behind TTG Fintech and Sky Metals 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.