Correlation Between TMTG and FTX Token

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

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

Diversification Opportunities for TMTG and FTX Token

0.0

Correlation Coefficient

TMTG  FTX Token

Pay attention - limited upside

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

Pair Corralation between TMTG and FTX Token

If you would invest  160.00  in FTX Token on February 4, 2024 and sell it today you would lose (8.00) from holding FTX Token or give up 5.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

TMTG  vs.  FTX Token

TMTG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TMTG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, TMTG is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

FTX Token

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FTX Token are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, FTX Token may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with TMTG and FTX Token

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

The idea behind TMTG and FTX Token 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.