Correlation Between Trade Desk and FATFISH GROUP

Can any of the company-specific risk be diversified away by investing in both Trade Desk and FATFISH GROUP 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 Trade Desk and FATFISH GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Trade Desk and FATFISH GROUP LTD, you can compare the effects of market volatilities on Trade Desk and FATFISH GROUP 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 Trade Desk with a short position of FATFISH GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and FATFISH GROUP.

Diversification Opportunities for Trade Desk and FATFISH GROUP

0.78

Correlation Coefficient

Trade Desk  FATFISH GROUP

Poor diversification

The 3 months correlation between Trade and FATFISH is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Trade Desk and FATFISH GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FATFISH GROUP LTD and Trade Desk 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 The Trade Desk are associated (or correlated) with FATFISH GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FATFISH GROUP LTD has no effect on the direction of Trade Desk i.e., Trade Desk and FATFISH GROUP go up and down completely randomly.

Pair Corralation between Trade Desk and FATFISH GROUP

Assuming the 90 days trading horizon The Trade Desk is expected to under-perform the FATFISH GROUP. But the stock apears to be less risky and, when comparing its historical volatility, The Trade Desk is 1.22 times less risky than FATFISH GROUP. The stock trades about -0.28 of its potential returns per unit of risk. The FATFISH GROUP LTD is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  0.40  in FATFISH GROUP LTD on December 1, 2024 and sell it today you would lose (0.10) from holding FATFISH GROUP LTD or give up 25.0% of portfolio value over 90 days.

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

The Trade Desk  vs.  FATFISH GROUP LTD

Trade Desk

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Trade Desk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

FATFISH GROUP LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days FATFISH GROUP LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Trade Desk and FATFISH GROUP

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

The idea behind The Trade Desk and FATFISH GROUP LTD 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.