Correlation Between Triad Group and Ross Stores
Can any of the company-specific risk be diversified away by investing in both Triad Group and Ross Stores 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 Triad Group and Ross Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Ross Stores, you can compare the effects of market volatilities on Triad Group and Ross Stores 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 Triad Group with a short position of Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Ross Stores.
Diversification Opportunities for Triad Group and Ross Stores
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triad and Ross is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores and Triad 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 Triad Group PLC are associated (or correlated) with Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of Triad Group i.e., Triad Group and Ross Stores go up and down completely randomly.
Pair Corralation between Triad Group and Ross Stores
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 1.83 times more return on investment than Ross Stores. However, Triad Group is 1.83 times more volatile than Ross Stores. It trades about 0.12 of its potential returns per unit of risk. Ross Stores is currently generating about 0.05 per unit of risk. If you would invest 7,626 in Triad Group PLC on September 3, 2024 and sell it today you would earn a total of 21,374 from holding Triad Group PLC or generate 280.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.7% |
| Values | Daily Returns |
Triad Group PLC vs. Ross Stores
Performance |
| Timeline |
| Triad Group PLC |
| Ross Stores |
Triad Group and Ross Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Ross Stores
The main advantage of trading using opposite Triad Group and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.| Triad Group vs. Global Net Lease | Triad Group vs. Discover Financial Services | Triad Group vs. MyHealthChecked Plc | Triad Group vs. Inspiration Healthcare Group |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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