Correlation Between Impact Growth and Ticon Freehold

Can any of the company-specific risk be diversified away by investing in both Impact Growth and Ticon Freehold 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 Impact Growth and Ticon Freehold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Impact Growth REIT and Ticon Freehold and, you can compare the effects of market volatilities on Impact Growth and Ticon Freehold 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 Impact Growth with a short position of Ticon Freehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impact Growth and Ticon Freehold.

Diversification Opportunities for Impact Growth and Ticon Freehold

0.17

Correlation Coefficient

Impact Growth  Ticon Freehold

Average diversification

The 3 months correlation between Impact and Ticon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Impact Growth REIT and Ticon Freehold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ticon Freehold and Impact Growth 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 Impact Growth REIT are associated (or correlated) with Ticon Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ticon Freehold has no effect on the direction of Impact Growth i.e., Impact Growth and Ticon Freehold go up and down completely randomly.

Pair Corralation between Impact Growth and Ticon Freehold

Assuming the 90 days trading horizon Impact Growth REIT is expected to under-perform the Ticon Freehold. But the stock apears to be less risky and, when comparing its historical volatility, Impact Growth REIT is 97.89 times less risky than Ticon Freehold. The stock trades about -0.08 of its potential returns per unit of risk. The Ticon Freehold and is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Ticon Freehold and on September 3, 2024 and sell it today you would earn a total of  1,030  from holding Ticon Freehold and or generate 9.223372036854776E16% return on investment over 90 days.

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

Impact Growth REIT  vs.  Ticon Freehold and

Impact Growth REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impact Growth REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Impact Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ticon Freehold

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ticon Freehold and are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ticon Freehold sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Impact Growth and Ticon Freehold

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

The idea behind Impact Growth REIT and Ticon Freehold and 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..