Correlation Between Twitter and New Horizon
Can any of the company-specific risk be diversified away by investing in both Twitter and New Horizon 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 New Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and New Horizon Group, you can compare the effects of market volatilities on Twitter and New Horizon 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 New Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and New Horizon.
Diversification Opportunities for Twitter and New Horizon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Twitter and New is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and New Horizon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Horizon Group 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 New Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Horizon Group has no effect on the direction of Twitter i.e., Twitter and New Horizon go up and down completely randomly.
Pair Corralation between Twitter and New Horizon
If you would invest 32,040 in New Horizon Group on January 20, 2024 and sell it today you would earn a total of 21,560 from holding New Horizon Group or generate 67.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.78% |
| Values | Daily Returns |
Twitter vs. New Horizon Group
Performance |
| Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New Horizon Group |
Twitter and New Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twitter and New Horizon
The main advantage of trading using opposite Twitter and New Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, New Horizon 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 New Horizon will offset losses from the drop in New Horizon's long position.| Twitter vs. Artisan Partners Asset | Twitter vs. Constellation Brands Class | Twitter vs. Waste Management | Twitter vs. Fresh Grapes LLC |
| New Horizon vs. Migdal Insurance | New Horizon vs. The Phoenix Holdings | New Horizon vs. Harel Insurance Investments | New Horizon vs. Clal Insurance Enterprises |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |