Correlation Between Tfa Alphagen and Gqg Partners

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

By analyzing existing cross correlation between Tfa Alphagen Growth and Gqg Partners Select, you can compare the effects of market volatilities on Tfa Alphagen and Gqg Partners 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 Tfa Alphagen with a short position of Gqg Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Gqg Partners.

Diversification Opportunities for Tfa Alphagen and Gqg Partners

0.53

Correlation Coefficient

Tfa Alphagen  Gqg Partners

Very weak diversification

The 3 months correlation between Tfa and Gqg is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Gqg Partners Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gqg Partners Select and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Gqg Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gqg Partners Select has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Gqg Partners go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Gqg Partners

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 0.77 times more return on investment than Gqg Partners. However, Tfa Alphagen Growth is 1.29 times less risky than Gqg Partners. It trades about 0.08 of its potential returns per unit of risk. Gqg Partners Select is currently generating about 0.01 per unit of risk. If you would invest  1,086  in Tfa Alphagen Growth on October 25, 2024 and sell it today you would earn a total of  51.00  from holding Tfa Alphagen Growth or generate 4.7% return on investment over 90 days.

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

Tfa Alphagen Growth  vs.  Gqg Partners Select

Tfa Alphagen Growth

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tfa Alphagen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gqg Partners Select

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gqg Partners Select has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Gqg Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tfa Alphagen and Gqg Partners

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

The idea behind Tfa Alphagen Growth and Gqg Partners Select 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.