Correlation Between TGS Esports and Ascot Resources

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

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

Diversification Opportunities for TGS Esports and Ascot Resources

0.0

Correlation Coefficient

TGS Esports  Ascot Resources

Pay attention - limited upside

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

Pair Corralation between TGS Esports and Ascot Resources

If you would invest  16.00  in Ascot Resources on December 19, 2024 and sell it today you would lose (2.00) from holding Ascot Resources or give up 12.5% of portfolio value over 90 days.

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

TGS Esports  vs.  Ascot Resources

TGS Esports

Risk-Adjusted Performance

Very Weak

Over the last 90 days TGS Esports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TGS Esports is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Ascot Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with TGS Esports and Ascot Resources

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

The idea behind TGS Esports and Ascot Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.