Correlation Between Twitter and Borussia Dortmund

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Twitter and Borussia Dortmund 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 Borussia Dortmund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Borussia Dortmund GmbH, you can compare the effects of market volatilities on Twitter and Borussia Dortmund 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 Borussia Dortmund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Borussia Dortmund.

Diversification Opportunities for Twitter and Borussia Dortmund

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Twitter and Borussia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Borussia Dortmund GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borussia Dortmund GmbH 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 Borussia Dortmund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borussia Dortmund GmbH has no effect on the direction of Twitter i.e., Twitter and Borussia Dortmund go up and down completely randomly.

Pair Corralation between Twitter and Borussia Dortmund

If you would invest  5,370  in Twitter on December 29, 2023 and sell it today you would earn a total of  0.00  from holding Twitter or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy4.35%
ValuesDaily Returns

Twitter  vs.  Borussia Dortmund GmbH

 Performance 
       Timeline  
Twitter 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Twitter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Twitter is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Borussia Dortmund GmbH 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Borussia Dortmund GmbH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Borussia Dortmund is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Twitter and Borussia Dortmund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Twitter and Borussia Dortmund

The main advantage of trading using opposite Twitter and Borussia Dortmund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, Borussia Dortmund 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 Borussia Dortmund will offset losses from the drop in Borussia Dortmund's long position.
The idea behind Twitter and Borussia Dortmund GmbH 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum