Correlation Between Singular Health and TTG Fintech

Can any of the company-specific risk be diversified away by investing in both Singular Health 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 Singular Health and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Singular Health Group and TTG Fintech, you can compare the effects of market volatilities on Singular Health 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 Singular Health with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and TTG Fintech.

Diversification Opportunities for Singular Health and TTG Fintech

0.22

Correlation Coefficient

Singular Health  TTG Fintech

Modest diversification

The 3 months correlation between Singular and TTG is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Singular Health 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 Singular Health Group 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 Singular Health i.e., Singular Health and TTG Fintech go up and down completely randomly.

Pair Corralation between Singular Health and TTG Fintech

Assuming the 90 days trading horizon Singular Health Group is expected to generate 0.66 times more return on investment than TTG Fintech. However, Singular Health Group is 1.51 times less risky than TTG Fintech. It trades about 0.01 of its potential returns per unit of risk. TTG Fintech is currently generating about -0.07 per unit of risk. If you would invest  26.00  in Singular Health Group on December 30, 2024 and sell it today you would lose (2.00) from holding Singular Health Group or give up 7.69% of portfolio value over 90 days.

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

Singular Health Group  vs.  TTG Fintech

Singular Health Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singular Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Singular Health is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TTG Fintech

Risk-Adjusted Performance

Very Weak

Over the last 90 days TTG Fintech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Singular Health and TTG Fintech

The main advantage of trading using opposite Singular Health and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health 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.

The idea behind Singular Health Group and TTG Fintech 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.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.