Correlation Between COPLAND ROAD and TERADYNE

Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD and TERADYNE 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 COPLAND ROAD and TERADYNE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COPLAND ROAD CAPITAL and TERADYNE, you can compare the effects of market volatilities on COPLAND ROAD and TERADYNE 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 COPLAND ROAD with a short position of TERADYNE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and TERADYNE.

Diversification Opportunities for COPLAND ROAD and TERADYNE

-0.52

Correlation Coefficient

COPLAND ROAD  TERADYNE

Excellent diversification

The 3 months correlation between COPLAND and TERADYNE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and TERADYNE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADYNE and COPLAND ROAD 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 COPLAND ROAD CAPITAL are associated (or correlated) with TERADYNE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADYNE has no effect on the direction of COPLAND ROAD i.e., COPLAND ROAD and TERADYNE go up and down completely randomly.

Pair Corralation between COPLAND ROAD and TERADYNE

Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to generate 1.23 times more return on investment than TERADYNE. However, COPLAND ROAD is 1.23 times more volatile than TERADYNE. It trades about 0.15 of its potential returns per unit of risk. TERADYNE is currently generating about -0.21 per unit of risk. If you would invest  3,747  in COPLAND ROAD CAPITAL on December 23, 2024 and sell it today you would earn a total of  1,213  from holding COPLAND ROAD CAPITAL or generate 32.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

COPLAND ROAD CAPITAL  vs.  TERADYNE

COPLAND ROAD CAPITAL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in COPLAND ROAD CAPITAL are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, COPLAND ROAD reported solid returns over the last few months and may actually be approaching a breakup point.

TERADYNE

Risk-Adjusted Performance

Very Weak

Over the last 90 days TERADYNE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with COPLAND ROAD and TERADYNE

The main advantage of trading using opposite COPLAND ROAD and TERADYNE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD position performs unexpectedly, TERADYNE 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 TERADYNE will offset losses from the drop in TERADYNE's long position.

The idea behind COPLAND ROAD CAPITAL and TERADYNE 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.