Correlation Between TOMBADOR IRON and Graham Holdings

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

Diversification Opportunities for TOMBADOR IRON and Graham Holdings

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between TOMBADOR IRON and Graham Holdings

If you would invest  10.00  in TOMBADOR IRON LTD on October 16, 2024 and sell it today you would earn a total of  0.00  from holding TOMBADOR IRON LTD or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy93.75%
ValuesDaily Returns

TOMBADOR IRON LTD  vs.  Graham Holdings Co

 Performance 
       Timeline  
TOMBADOR IRON LTD 

Risk-Adjusted Performance

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Over the last 90 days TOMBADOR IRON LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TOMBADOR IRON is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Graham Holdings 

Risk-Adjusted Performance

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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Graham Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

TOMBADOR IRON and Graham Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TOMBADOR IRON and Graham Holdings

The main advantage of trading using opposite TOMBADOR IRON and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOMBADOR IRON position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.
The idea behind TOMBADOR IRON LTD and Graham Holdings Co 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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