Correlation Between POST TELECOMMU and TDG Global

Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and TDG Global 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 POST TELECOMMU and TDG Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between POST TELECOMMU and TDG Global Investment, you can compare the effects of market volatilities on POST TELECOMMU and TDG Global 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 POST TELECOMMU with a short position of TDG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and TDG Global.

Diversification Opportunities for POST TELECOMMU and TDG Global

-0.42

Correlation Coefficient

POST TELECOMMU  TDG Global

Very good diversification

The 3 months correlation between POST and TDG is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and TDG Global Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDG Global Investment and POST TELECOMMU 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 POST TELECOMMU are associated (or correlated) with TDG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDG Global Investment has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and TDG Global go up and down completely randomly.

Pair Corralation between POST TELECOMMU and TDG Global

Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 1.53 times more return on investment than TDG Global. However, POST TELECOMMU is 1.53 times more volatile than TDG Global Investment. It trades about 0.01 of its potential returns per unit of risk. TDG Global Investment is currently generating about -0.17 per unit of risk. If you would invest  3,180,000  in POST TELECOMMU on September 22, 2024 and sell it today you would lose (20,000) from holding POST TELECOMMU or give up 0.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	84.09%
Values	Daily Returns

POST TELECOMMU  vs.  TDG Global Investment

POST TELECOMMU

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in POST TELECOMMU are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, POST TELECOMMU may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TDG Global Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TDG Global Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with POST TELECOMMU and TDG Global

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

The idea behind POST TELECOMMU and TDG Global Investment 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.