Correlation Between Turtle Beach and Guitammer

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

By analyzing existing cross correlation between Turtle Beach Corp and The Guitammer, you can compare the effects of market volatilities on Turtle Beach and Guitammer 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 Turtle Beach with a short position of Guitammer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turtle Beach and Guitammer.

Diversification Opportunities for Turtle Beach and Guitammer

0.0

Correlation Coefficient

Turtle Beach  Guitammer

Pay attention - limited upside

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

Pair Corralation between Turtle Beach and Guitammer

If you would invest (100.00) in The Guitammer on January 21, 2024 and sell it today you would earn a total of  100.00  from holding The Guitammer or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Turtle Beach Corp  vs.  The Guitammer

Turtle Beach Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Turtle Beach Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Turtle Beach reported solid returns over the last few months and may actually be approaching a breakup point.

Guitammer

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Turtle Beach and Guitammer

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

The idea behind Turtle Beach Corp and The Guitammer 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.