Correlation Between Gold Road and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Gold Road and TTG Fintech 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 Gold Road and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and TTG Fintech, you can compare the effects of market volatilities on Gold Road and TTG Fintech 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 Gold Road with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and TTG Fintech.
Diversification Opportunities for Gold Road and TTG Fintech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gold and TTG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Gold Road 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 Gold Road Resources are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Gold Road i.e., Gold Road and TTG Fintech go up and down completely randomly.
Pair Corralation between Gold Road and TTG Fintech
Assuming the 90 days trading horizon Gold Road Resources is expected to generate 0.29 times more return on investment than TTG Fintech. However, Gold Road Resources is 3.4 times less risky than TTG Fintech. It trades about 0.73 of its potential returns per unit of risk. TTG Fintech is currently generating about 0.02 per unit of risk. If you would invest 206.00 in Gold Road Resources on October 26, 2024 and sell it today you would earn a total of 41.00 from holding Gold Road Resources or generate 19.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gold Road Resources vs. TTG Fintech
Performance |
Timeline |
Gold Road Resources |
TTG Fintech |
Gold Road and TTG Fintech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gold Road and TTG Fintech
The main advantage of trading using opposite Gold Road and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.Gold Road vs. Insurance Australia Group | Gold Road vs. Credit Clear | Gold Road vs. Kkr Credit Income | Gold Road vs. Sequoia Financial Group |
TTG Fintech vs. Bailador Technology Invest | TTG Fintech vs. Dug Technology | TTG Fintech vs. Oceania Healthcare | TTG Fintech vs. Ras Technology Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stocks Directory Find actively traded stocks across global markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |