Correlation Between True Public and Thachang Green

Can any of the company-specific risk be diversified away by investing in both True Public and Thachang Green 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 True Public and Thachang Green into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between True Public and Thachang Green Energy, you can compare the effects of market volatilities on True Public and Thachang Green 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 True Public with a short position of Thachang Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Public and Thachang Green.

Diversification Opportunities for True Public and Thachang Green

-0.17

Correlation Coefficient

True Public  Thachang Green

Good diversification

The 3 months correlation between True and Thachang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding True Public and Thachang Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thachang Green Energy and True Public 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 True Public are associated (or correlated) with Thachang Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thachang Green Energy has no effect on the direction of True Public i.e., True Public and Thachang Green go up and down completely randomly.

Pair Corralation between True Public and Thachang Green

Assuming the 90 days trading horizon True Public is expected to generate 0.9 times more return on investment than Thachang Green. However, True Public is 1.11 times less risky than Thachang Green. It trades about 0.06 of its potential returns per unit of risk. Thachang Green Energy is currently generating about -0.25 per unit of risk. If you would invest  1,100  in True Public on December 27, 2024 and sell it today you would earn a total of  80.00  from holding True Public or generate 7.27% return on investment over 90 days.

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

True Public  vs.  Thachang Green Energy

True Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in True Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, True Public may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Thachang Green Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thachang Green Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with True Public and Thachang Green

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

The idea behind True Public and Thachang Green Energy 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.