Correlation Between Triad Group and Raytheon Technologies
Can any of the company-specific risk be diversified away by investing in both Triad Group and Raytheon Technologies 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 Raytheon Technologies 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 Raytheon Technologies Corp, you can compare the effects of market volatilities on Triad Group and Raytheon Technologies 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 Raytheon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Raytheon Technologies.
Diversification Opportunities for Triad Group and Raytheon Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Triad and Raytheon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Raytheon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytheon Technologies 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 Raytheon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytheon Technologies has no effect on the direction of Triad Group i.e., Triad Group and Raytheon Technologies go up and down completely randomly.
Pair Corralation between Triad Group and Raytheon Technologies
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 2.13 times more return on investment than Raytheon Technologies. However, Triad Group is 2.13 times more volatile than Raytheon Technologies Corp. It trades about 0.06 of its potential returns per unit of risk. Raytheon Technologies Corp is currently generating about 0.1 per unit of risk. If you would invest 24,009 in Triad Group PLC on September 3, 2024 and sell it today you would earn a total of 4,991 from holding Triad Group PLC or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triad Group PLC vs. Raytheon Technologies Corp
Performance |
| Timeline |
| Triad Group PLC |
| Raytheon Technologies |
Triad Group and Raytheon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Raytheon Technologies
The main advantage of trading using opposite Triad Group and Raytheon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Raytheon Technologies 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 Raytheon Technologies will offset losses from the drop in Raytheon Technologies' 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 |
| Raytheon Technologies vs. Gaztransport et Technigaz | Raytheon Technologies vs. Panther Metals PLC | Raytheon Technologies vs. Associated British Foods | Raytheon Technologies vs. Sovereign Metals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |