Correlation Between TRAVIS PERKINS and FLAT GLASS
Can any of the company-specific risk be diversified away by investing in both TRAVIS PERKINS and FLAT GLASS 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 TRAVIS PERKINS and FLAT GLASS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRAVIS PERKINS LS 1 and FLAT GLASS GROUP, you can compare the effects of market volatilities on TRAVIS PERKINS and FLAT GLASS 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 TRAVIS PERKINS with a short position of FLAT GLASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVIS PERKINS and FLAT GLASS.
Diversification Opportunities for TRAVIS PERKINS and FLAT GLASS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRAVIS and FLAT is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding TRAVIS PERKINS LS 1 and FLAT GLASS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLAT GLASS GROUP and TRAVIS PERKINS 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 TRAVIS PERKINS LS 1 are associated (or correlated) with FLAT GLASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLAT GLASS GROUP has no effect on the direction of TRAVIS PERKINS i.e., TRAVIS PERKINS and FLAT GLASS go up and down completely randomly.
Pair Corralation between TRAVIS PERKINS and FLAT GLASS
Assuming the 90 days trading horizon TRAVIS PERKINS LS 1 is expected to under-perform the FLAT GLASS. But the stock apears to be less risky and, when comparing its historical volatility, TRAVIS PERKINS LS 1 is 1.42 times less risky than FLAT GLASS. The stock trades about -0.15 of its potential returns per unit of risk. The FLAT GLASS GROUP is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 137.00 in FLAT GLASS GROUP on December 27, 2024 and sell it today you would earn a total of 1.00 from holding FLAT GLASS GROUP or generate 0.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
TRAVIS PERKINS LS 1 vs. FLAT GLASS GROUP
Performance |
Timeline |
TRAVIS PERKINS LS |
FLAT GLASS GROUP |
TRAVIS PERKINS and FLAT GLASS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TRAVIS PERKINS and FLAT GLASS
The main advantage of trading using opposite TRAVIS PERKINS and FLAT GLASS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVIS PERKINS position performs unexpectedly, FLAT GLASS 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 FLAT GLASS will offset losses from the drop in FLAT GLASS's long position.TRAVIS PERKINS vs. AUSNUTRIA DAIRY | TRAVIS PERKINS vs. INDOFOOD AGRI RES | TRAVIS PERKINS vs. DaChan Food Limited | TRAVIS PERKINS vs. GWILLI FOOD |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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