Correlation Between TDH Holdings and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both TDH Holdings and NYSE Composite 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 TDH Holdings and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TDH Holdings and NYSE Composite, you can compare the effects of market volatilities on TDH Holdings and NYSE Composite 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 TDH Holdings with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDH Holdings and NYSE Composite.
Diversification Opportunities for TDH Holdings and NYSE Composite
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TDH and NYSE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding TDH Holdings and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and TDH Holdings 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 TDH Holdings are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of TDH Holdings i.e., TDH Holdings and NYSE Composite go up and down completely randomly.
Pair Corralation between TDH Holdings and NYSE Composite
Given the investment horizon of 90 days TDH Holdings is expected to generate 3.63 times more return on investment than NYSE Composite. However, TDH Holdings is 3.63 times more volatile than NYSE Composite. It trades about 0.06 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.19 per unit of risk. If you would invest 111.00 in TDH Holdings on February 2, 2024 and sell it today you would earn a total of 3.00 from holding TDH Holdings or generate 2.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
TDH Holdings vs. NYSE Composite
Performance |
Timeline |
TDH Holdings and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
TDH Holdings
Pair trading matchups for TDH Holdings
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with TDH Holdings and NYSE Composite
The main advantage of trading using opposite TDH Holdings and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDH Holdings position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.TDH Holdings vs. Central Garden Pet | TDH Holdings vs. Central Garden Pet | TDH Holdings vs. Natures Sunshine Products | TDH Holdings vs. Associated British Foods |
NYSE Composite vs. NI Holdings | NYSE Composite vs. Mattel Inc | NYSE Composite vs. Parker Hannifin | NYSE Composite vs. Artisan Partners Asset |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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