Correlation Between Treasure Global and NeoMedia Technologies

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

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

Diversification Opportunities for Treasure Global and NeoMedia Technologies

0.0

Correlation Coefficient

Treasure Global  NeoMedia Technologies

Pay attention - limited upside

The 3 months correlation between Treasure and NeoMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Treasure Global and NeoMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoMedia Technologies and Treasure Global 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 Treasure Global are associated (or correlated) with NeoMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoMedia Technologies has no effect on the direction of Treasure Global i.e., Treasure Global and NeoMedia Technologies go up and down completely randomly.

Pair Corralation between Treasure Global and NeoMedia Technologies

If you would invest  23.00  in Treasure Global on December 4, 2024 and sell it today you would lose (9.00) from holding Treasure Global or give up 39.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Treasure Global  vs.  NeoMedia Technologies

Treasure Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Treasure Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Treasure Global is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

NeoMedia Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days NeoMedia Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, NeoMedia Technologies is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Treasure Global and NeoMedia Technologies

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

The idea behind Treasure Global and NeoMedia Technologies 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.