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
Very weak diversification
The 3 months correlation between TSOGO and EAST is 0.54. 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 2.75 times less risky than EAST SIDE. The stock trades about -0.12 of its potential returns per unit of risk. The EAST SIDE GAMES is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 32.00 in EAST SIDE GAMES on December 27, 2024 and sell it today you would lose (6.00) from holding EAST SIDE GAMES or give up 18.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TSOGO SUN GAMING vs. EAST SIDE GAMES
Performance |
Timeline |
TSOGO SUN GAMING |
EAST SIDE GAMES |
TSOGO SUN and EAST SIDE Volatility Contrast
Predicted Return Density |
Returns |
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.TSOGO SUN vs. New Residential Investment | TSOGO SUN vs. AEON METALS LTD | TSOGO SUN vs. SIERRA METALS | TSOGO SUN vs. tokentus investment AG |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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