Correlation Between Trk Corp and Alexander Marine
Can any of the company-specific risk be diversified away by investing in both Trk Corp and Alexander Marine 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 Trk Corp and Alexander Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trk Corp and Alexander Marine Co, you can compare the effects of market volatilities on Trk Corp and Alexander Marine 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 Trk Corp with a short position of Alexander Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trk Corp and Alexander Marine.
Diversification Opportunities for Trk Corp and Alexander Marine
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trk and Alexander is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Trk Corp and Alexander Marine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexander Marine and Trk Corp 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 Trk Corp are associated (or correlated) with Alexander Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexander Marine has no effect on the direction of Trk Corp i.e., Trk Corp and Alexander Marine go up and down completely randomly.
Pair Corralation between Trk Corp and Alexander Marine
Assuming the 90 days trading horizon Trk Corp is expected to generate 1.53 times more return on investment than Alexander Marine. However, Trk Corp is 1.53 times more volatile than Alexander Marine Co. It trades about 0.05 of its potential returns per unit of risk. Alexander Marine Co is currently generating about -0.33 per unit of risk. If you would invest 1,955 in Trk Corp on August 29, 2024 and sell it today you would earn a total of 45.00 from holding Trk Corp or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trk Corp vs. Alexander Marine Co
Performance |
| Timeline |
| Trk Corp |
| Alexander Marine |
Trk Corp and Alexander Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trk Corp and Alexander Marine
The main advantage of trading using opposite Trk Corp and Alexander Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trk Corp position performs unexpectedly, Alexander Marine 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 Alexander Marine will offset losses from the drop in Alexander Marine's long position.| Trk Corp vs. Tainan Spinning Co | Trk Corp vs. Carnival Industrial Corp | Trk Corp vs. Symtek Automation Asia | Trk Corp vs. CTCI Corp |
| Alexander Marine vs. Chung Hsin Electric Machinery | Alexander Marine vs. Andes Technology Corp | Alexander Marine vs. Asia Vital Components | Alexander Marine vs. Fulgent Sun International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance |