Correlation Between MINIERE TOUISSIT and HIGHTECH PAYMENT

Can any of the company-specific risk be diversified away by investing in both MINIERE TOUISSIT and HIGHTECH PAYMENT 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 MINIERE TOUISSIT and HIGHTECH PAYMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MINIERE TOUISSIT and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on MINIERE TOUISSIT and HIGHTECH PAYMENT 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 MINIERE TOUISSIT with a short position of HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINIERE TOUISSIT and HIGHTECH PAYMENT.

Diversification Opportunities for MINIERE TOUISSIT and HIGHTECH PAYMENT

0.08

Correlation Coefficient

MINIERE TOUISSIT  HIGHTECH PAYMENT

Significant diversification

The 3 months correlation between MINIERE and HIGHTECH is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MINIERE TOUISSIT and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and MINIERE TOUISSIT 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 MINIERE TOUISSIT are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of MINIERE TOUISSIT i.e., MINIERE TOUISSIT and HIGHTECH PAYMENT go up and down completely randomly.

Pair Corralation between MINIERE TOUISSIT and HIGHTECH PAYMENT

Assuming the 90 days trading horizon MINIERE TOUISSIT is expected to generate 0.66 times more return on investment than HIGHTECH PAYMENT. However, MINIERE TOUISSIT is 1.52 times less risky than HIGHTECH PAYMENT. It trades about 0.0 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about -0.04 per unit of risk. If you would invest  179,900  in MINIERE TOUISSIT on September 13, 2024 and sell it today you would lose (17,400) from holding MINIERE TOUISSIT or give up 9.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	73.87%
Values	Daily Returns

MINIERE TOUISSIT  vs.  HIGHTECH PAYMENT SYSTEMS

MINIERE TOUISSIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MINIERE TOUISSIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MINIERE TOUISSIT is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

HIGHTECH PAYMENT SYSTEMS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HIGHTECH PAYMENT SYSTEMS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, HIGHTECH PAYMENT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with MINIERE TOUISSIT and HIGHTECH PAYMENT

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

The idea behind MINIERE TOUISSIT and HIGHTECH PAYMENT SYSTEMS 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.