Correlation Between TGCC SA and HIGHTECH PAYMENT
Can any of the company-specific risk be diversified away by investing in both TGCC SA and HIGHTECH PAYMENT 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 TGCC SA and HIGHTECH PAYMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGCC SA and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on TGCC SA and HIGHTECH PAYMENT 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 TGCC SA with a short position of HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGCC SA and HIGHTECH PAYMENT.
Diversification Opportunities for TGCC SA and HIGHTECH PAYMENT
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TGCC and HIGHTECH is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding TGCC SA and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and TGCC SA 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 TGCC SA are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of TGCC SA i.e., TGCC SA and HIGHTECH PAYMENT go up and down completely randomly.
Pair Corralation between TGCC SA and HIGHTECH PAYMENT
Assuming the 90 days trading horizon TGCC SA is expected to generate 1.33 times more return on investment than HIGHTECH PAYMENT. However, TGCC SA is 1.33 times more volatile than HIGHTECH PAYMENT SYSTEMS. It trades about 0.25 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about 0.06 per unit of risk. If you would invest 47,100 in TGCC SA on December 30, 2024 and sell it today you would earn a total of 22,900 from holding TGCC SA or generate 48.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TGCC SA vs. HIGHTECH PAYMENT SYSTEMS
Performance |
Timeline |
TGCC SA |
HIGHTECH PAYMENT SYSTEMS |
TGCC SA and HIGHTECH PAYMENT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TGCC SA and HIGHTECH PAYMENT
The main advantage of trading using opposite TGCC SA and HIGHTECH PAYMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGCC SA position performs unexpectedly, HIGHTECH PAYMENT 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 HIGHTECH PAYMENT will offset losses from the drop in HIGHTECH PAYMENT's long position.TGCC SA vs. CREDIT IMMOBILIER ET | TGCC SA vs. MICRODATA | TGCC SA vs. BANK OF AFRICA | TGCC SA vs. HIGHTECH PAYMENT SYSTEMS |
HIGHTECH PAYMENT vs. ATTIJARIWAFA BANK | HIGHTECH PAYMENT vs. BANK OF AFRICA | HIGHTECH PAYMENT vs. CFG BANK | HIGHTECH PAYMENT vs. MICRODATA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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