Correlation Between Transcontinental and Stingray

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Transcontinental and Stingray 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 Transcontinental and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transcontinental and Stingray Group, you can compare the effects of market volatilities on Transcontinental and Stingray 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 Transcontinental with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transcontinental and Stingray.

Diversification Opportunities for Transcontinental and Stingray

-0.13
  Correlation Coefficient

Good diversification

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

Pair Corralation between Transcontinental and Stingray

Assuming the 90 days trading horizon Transcontinental is expected to generate 1.72 times less return on investment than Stingray. But when comparing it to its historical volatility, Transcontinental is 1.2 times less risky than Stingray. It trades about 0.04 of its potential returns per unit of risk. Stingray Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  456.00  in Stingray Group on September 25, 2024 and sell it today you would earn a total of  288.00  from holding Stingray Group or generate 63.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Transcontinental  vs.  Stingray Group

 Performance 
       Timeline  
Transcontinental 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Transcontinental are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Transcontinental may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Stingray Group 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Stingray Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Stingray is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Transcontinental and Stingray Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Transcontinental and Stingray

The main advantage of trading using opposite Transcontinental and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transcontinental position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.
The idea behind Transcontinental and Stingray Group 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios