Correlation Between Tetragon Financial and Ctac NV

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

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

Diversification Opportunities for Tetragon Financial and Ctac NV

-0.17

Correlation Coefficient

Tetragon Financial  Ctac NV

Good diversification

The 3 months correlation between Tetragon and Ctac is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and Ctac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ctac NV and Tetragon Financial 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 Tetragon Financial Group are associated (or correlated) with Ctac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ctac NV has no effect on the direction of Tetragon Financial i.e., Tetragon Financial and Ctac NV go up and down completely randomly.

Pair Corralation between Tetragon Financial and Ctac NV

Assuming the 90 days trading horizon Tetragon Financial is expected to generate 2.9 times less return on investment than Ctac NV. But when comparing it to its historical volatility, Tetragon Financial Group is 1.49 times less risky than Ctac NV. It trades about 0.05 of its potential returns per unit of risk. Ctac NV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  299.00  in Ctac NV on December 23, 2024 and sell it today you would earn a total of  52.00  from holding Ctac NV or generate 17.39% return on investment over 90 days.

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

Tetragon Financial Group  vs.  Ctac NV

Tetragon Financial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tetragon Financial Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Tetragon Financial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Ctac NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ctac NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Ctac NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tetragon Financial and Ctac NV

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

The idea behind Tetragon Financial Group and Ctac NV 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.