Correlation Between Distoken Acquisition and Terex

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

Diversification Opportunities for Distoken Acquisition and Terex

DistokenTerexDiversified AwayDistokenTerexDiversified Away100%
-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between Distoken and Terex is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Terex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terex and Distoken Acquisition 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 Distoken Acquisition are associated (or correlated) with Terex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terex has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and Terex go up and down completely randomly.

Pair Corralation between Distoken Acquisition and Terex

Given the investment horizon of 90 days Distoken Acquisition is expected to generate 0.6 times more return on investment than Terex. However, Distoken Acquisition is 1.66 times less risky than Terex. It trades about -0.14 of its potential returns per unit of risk. Terex is currently generating about -0.25 per unit of risk. If you would invest  1,168  in Distoken Acquisition on November 27, 2024 and sell it today you would lose (57.00) from holding Distoken Acquisition or give up 4.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Distoken Acquisition  vs.  Terex

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15DIST TEX
       Timeline  
Distoken Acquisition 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Distoken Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.111.211.311.411.511.6
Terex 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Terex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4244464850525456

Distoken Acquisition and Terex Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.67-2.75-1.83-0.910.00.911.842.773.7 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15DIST TEX
       Returns  

Pair Trading with Distoken Acquisition and Terex

The main advantage of trading using opposite Distoken Acquisition and Terex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition position performs unexpectedly, Terex 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 Terex will offset losses from the drop in Terex's long position.
The idea behind Distoken Acquisition and Terex 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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