Correlation Between Tng Investment and Techno Agricultural

Can any of the company-specific risk be diversified away by investing in both Tng Investment and Techno Agricultural 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 Tng Investment and Techno Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tng Investment And and Techno Agricultural Supplying, you can compare the effects of market volatilities on Tng Investment and Techno Agricultural 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 Tng Investment with a short position of Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Techno Agricultural.

Diversification Opportunities for Tng Investment and Techno Agricultural

-0.53

Correlation Coefficient

Tng Investment  Techno Agricultural

Excellent diversification

The 3 months correlation between Tng and Techno is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural and Tng Investment 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 Tng Investment And are associated (or correlated) with Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Tng Investment i.e., Tng Investment and Techno Agricultural go up and down completely randomly.

Pair Corralation between Tng Investment and Techno Agricultural

Assuming the 90 days trading horizon Tng Investment And is expected to under-perform the Techno Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Tng Investment And is 1.14 times less risky than Techno Agricultural. The stock trades about -0.17 of its potential returns per unit of risk. The Techno Agricultural Supplying is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  246,000  in Techno Agricultural Supplying on December 28, 2024 and sell it today you would earn a total of  22,000  from holding Techno Agricultural Supplying or generate 8.94% return on investment over 90 days.

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

Tng Investment And  vs.  Techno Agricultural Supplying

Tng Investment And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tng Investment And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Techno Agricultural

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Techno Agricultural Supplying are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Techno Agricultural may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tng Investment and Techno Agricultural

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

The idea behind Tng Investment And and Techno Agricultural Supplying 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.