Correlation Between TSOGO SUN and EAST SIDE

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

By analyzing existing cross correlation between TSOGO SUN GAMING and EAST SIDE GAMES, you can compare the effects of market volatilities on TSOGO SUN and EAST SIDE 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 TSOGO SUN with a short position of EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and EAST SIDE.

Diversification Opportunities for TSOGO SUN and EAST SIDE

-0.46

Correlation Coefficient

TSOGO SUN  EAST SIDE

Very good diversification

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

Pair Corralation between TSOGO SUN and EAST SIDE

Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the EAST SIDE. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 3.01 times less risky than EAST SIDE. The stock trades about -0.04 of its potential returns per unit of risk. The EAST SIDE GAMES is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  31.00  in EAST SIDE GAMES on December 5, 2024 and sell it today you would lose (1.00) from holding EAST SIDE GAMES or give up 3.23% of portfolio value over 90 days.

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

TSOGO SUN GAMING  vs.  EAST SIDE GAMES

TSOGO SUN GAMING

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TSOGO SUN GAMING are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TSOGO SUN reported solid returns over the last few months and may actually be approaching a breakup point.

EAST SIDE GAMES

Risk-Adjusted Performance

Very Weak

Over the last 90 days EAST SIDE GAMES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with TSOGO SUN and EAST SIDE

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

The idea behind TSOGO SUN GAMING and EAST SIDE GAMES 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.