Correlation Between TCJH Old and SAI Old

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

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

Diversification Opportunities for TCJH Old and SAI Old

-0.56

Correlation Coefficient

TCJH Old  SAI Old

Excellent diversification

The 3 months correlation between TCJH and SAI is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding TCJH Old and SAI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAI Old and TCJH Old 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 TCJH Old are associated (or correlated) with SAI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAI Old has no effect on the direction of TCJH Old i.e., TCJH Old and SAI Old go up and down completely randomly.

Pair Corralation between TCJH Old and SAI Old

If you would invest  30.00  in TCJH Old on October 25, 2024 and sell it today you would earn a total of  2.00  from holding TCJH Old or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

TCJH Old  vs.  SAI Old

TCJH Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TCJH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's forward-looking indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

SAI Old

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days SAI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly weak basic indicators, SAI Old demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TCJH Old and SAI Old

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

The idea behind TCJH Old and SAI Old 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.