Correlation Between Triad Group and Camellia Plc
Can any of the company-specific risk be diversified away by investing in both Triad Group and Camellia Plc 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 Camellia Plc 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 Camellia Plc, you can compare the effects of market volatilities on Triad Group and Camellia Plc 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 Camellia Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Camellia Plc.
Diversification Opportunities for Triad Group and Camellia Plc
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triad and Camellia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Camellia Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Plc 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 Camellia Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Plc has no effect on the direction of Triad Group i.e., Triad Group and Camellia Plc go up and down completely randomly.
Pair Corralation between Triad Group and Camellia Plc
Assuming the 90 days trading horizon Triad Group is expected to generate 2.32 times less return on investment than Camellia Plc. In addition to that, Triad Group is 1.15 times more volatile than Camellia Plc. It trades about 0.04 of its total potential returns per unit of risk. Camellia Plc is currently generating about 0.11 per unit of volatility. If you would invest 431,000 in Camellia Plc on September 25, 2024 and sell it today you would earn a total of 55,000 from holding Camellia Plc or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triad Group PLC vs. Camellia Plc
Performance |
| Timeline |
| Triad Group PLC |
| Camellia Plc |
Triad Group and Camellia Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Camellia Plc
The main advantage of trading using opposite Triad Group and Camellia Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Camellia Plc 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 Camellia Plc will offset losses from the drop in Camellia Plc's long position.| Triad Group vs. Chocoladefabriken Lindt Spruengli | Triad Group vs. Rockwood Realisation PLC | Triad Group vs. Toyota Motor Corp | Triad Group vs. Johnson Matthey PLC |
| Camellia Plc vs. Uniper SE | Camellia Plc vs. Mulberry Group PLC | Camellia Plc vs. London Security Plc | Camellia Plc vs. Triad Group PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |