Correlation Between TTG Fintech and Sandon Capital

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

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

Diversification Opportunities for TTG Fintech and Sandon Capital

0.4

Correlation Coefficient

TTG Fintech  Sandon Capital

Very weak diversification

The 3 months correlation between TTG and Sandon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech and Sandon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandon Capital Inves 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 Sandon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandon Capital Inves has no effect on the direction of TTG Fintech i.e., TTG Fintech and Sandon Capital go up and down completely randomly.

Pair Corralation between TTG Fintech and Sandon Capital

Assuming the 90 days trading horizon TTG Fintech is expected to under-perform the Sandon Capital. In addition to that, TTG Fintech is 4.14 times more volatile than Sandon Capital Investments. It trades about -0.02 of its total potential returns per unit of risk. Sandon Capital Investments is currently generating about 0.05 per unit of volatility. If you would invest  70.00  in Sandon Capital Investments on October 22, 2024 and sell it today you would earn a total of  12.00  from holding Sandon Capital Investments or generate 17.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.13%
Values	Daily Returns

TTG Fintech  vs.  Sandon Capital Investments

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 uncertain fundamental indicators, TTG Fintech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Sandon Capital Inves

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sandon Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Sandon Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TTG Fintech and Sandon Capital

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

The idea behind TTG Fintech and Sandon Capital Investments 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.