Correlation Between TGS Esports and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both TGS Esports and Postmedia Network 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 Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGS Esports and Postmedia Network Canada, you can compare the effects of market volatilities on TGS Esports and Postmedia Network 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 Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGS Esports and Postmedia Network.
Diversification Opportunities for TGS Esports and Postmedia Network
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TGS and Postmedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TGS Esports and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada 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 Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of TGS Esports i.e., TGS Esports and Postmedia Network go up and down completely randomly.
Pair Corralation between TGS Esports and Postmedia Network
If you would invest 152.00 in Postmedia Network Canada on December 4, 2024 and sell it today you would lose (51.00) from holding Postmedia Network Canada or give up 33.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TGS Esports vs. Postmedia Network Canada
Performance |
Timeline |
TGS Esports |
Postmedia Network Canada |
TGS Esports and Postmedia Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TGS Esports and Postmedia Network
The main advantage of trading using opposite TGS Esports and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGS Esports position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.TGS Esports vs. Brookfield Office Properties | TGS Esports vs. Air Canada | TGS Esports vs. Richelieu Hardware | TGS Esports vs. MTY Food Group |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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