Correlation Between Twitter and Global Sources
Can any of the company-specific risk be diversified away by investing in both Twitter and Global Sources 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 Twitter and Global Sources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Global Sources, you can compare the effects of market volatilities on Twitter and Global Sources 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 Twitter with a short position of Global Sources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Global Sources.
Diversification Opportunities for Twitter and Global Sources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Twitter and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Global Sources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sources and Twitter 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 Twitter are associated (or correlated) with Global Sources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sources has no effect on the direction of Twitter i.e., Twitter and Global Sources go up and down completely randomly.
Pair Corralation between Twitter and Global Sources
If you would invest 4,701 in Twitter on December 30, 2023 and sell it today you would earn a total of 669.00 from holding Twitter or generate 14.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Twitter vs. Global Sources
Performance |
Timeline |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Global Sources |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Twitter and Global Sources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Twitter and Global Sources
The main advantage of trading using opposite Twitter and Global Sources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, Global Sources 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 Global Sources will offset losses from the drop in Global Sources' long position.Twitter vs. United Guardian | Twitter vs. Kinetik Holdings | Twitter vs. Philip Morris International | Twitter vs. ASML Holding NV |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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