Correlation Between MOONPIG GROUP and TCS GROUP

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Can any of the company-specific risk be diversified away by investing in both MOONPIG GROUP and TCS GROUP 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 MOONPIG GROUP and TCS GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOONPIG GROUP PLC and TCS GROUP HOLDING, you can compare the effects of market volatilities on MOONPIG GROUP and TCS GROUP 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 MOONPIG GROUP with a short position of TCS GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOONPIG GROUP and TCS GROUP.

Diversification Opportunities for MOONPIG GROUP and TCS GROUP

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between MOONPIG and TCS GROUP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MOONPIG GROUP PLC ORD 10P and TCS GROUP HOLDING PLC GDR EACH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCS GROUP HOLDING and MOONPIG GROUP 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 MOONPIG GROUP PLC are associated (or correlated) with TCS GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCS GROUP HOLDING has no effect on the direction of MOONPIG GROUP i.e., MOONPIG GROUP and TCS GROUP go up and down completely randomly.

Pair Corralation between MOONPIG GROUP and TCS GROUP

Assuming the 90 days trading horizon MOONPIG GROUP PLC is expected to generate 0.47 times more return on investment than TCS GROUP. However, MOONPIG GROUP PLC is 2.11 times less risky than TCS GROUP. It trades about -0.09 of its potential returns per unit of risk. TCS GROUP HOLDING is currently generating about -0.09 per unit of risk. If you would invest  25,860  in MOONPIG GROUP PLC on August 29, 2022 and sell it today you would lose (9,900)  from holding MOONPIG GROUP PLC or give up 38.28% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MOONPIG GROUP PLC ORD 10P  vs.  TCS GROUP HOLDING PLC GDR EACH

 Performance (%) 
       Timeline  
MOONPIG GROUP PLC 
MOONPIG Performance
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Over the last 90 days MOONPIG GROUP PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in December 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

MOONPIG Price Channel

TCS GROUP HOLDING 
TCS GROUP Performance
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Over the last 90 days TCS GROUP HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, TCS GROUP is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

TCS GROUP Price Channel

MOONPIG GROUP and TCS GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MOONPIG GROUP and TCS GROUP

The main advantage of trading using opposite MOONPIG GROUP and TCS GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOONPIG GROUP position performs unexpectedly, TCS GROUP 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 TCS GROUP will offset losses from the drop in TCS GROUP's long position.
MOONPIG GROUP vs. RIO TINTO PLC
MOONPIG GROUP vs. INDIVIOR PLC ORD
MOONPIG GROUP vs. MAST ENERGY DEVELOPMENTS
MOONPIG GROUP vs. GENERAL ELECTRIC COMPANY
The idea behind MOONPIG GROUP PLC and TCS GROUP HOLDING 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.
TCS GROUP vs. MAST ENERGY DEVELOPMENTS
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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