Correlation Between Acadian Timber and TUT Fitness

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

By analyzing existing cross correlation between Acadian Timber Corp and TUT Fitness Group, you can compare the effects of market volatilities on Acadian Timber and TUT Fitness 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 Acadian Timber with a short position of TUT Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadian Timber and TUT Fitness.

Diversification Opportunities for Acadian Timber and TUT Fitness

0.0

Correlation Coefficient

Acadian Timber  TUT Fitness

Pay attention - limited upside

The 3 months correlation between Acadian and TUT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acadian Timber Corp and TUT Fitness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUT Fitness Group and Acadian Timber 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 Acadian Timber Corp are associated (or correlated) with TUT Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUT Fitness Group has no effect on the direction of Acadian Timber i.e., Acadian Timber and TUT Fitness go up and down completely randomly.

Pair Corralation between Acadian Timber and TUT Fitness

If you would invest  1,759  in Acadian Timber Corp on December 20, 2024 and sell it today you would lose (4.00) from holding Acadian Timber Corp or give up 0.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acadian Timber Corp  vs.  TUT Fitness Group

Acadian Timber Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Acadian Timber Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Acadian Timber is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

TUT Fitness Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days TUT Fitness Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TUT Fitness is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Acadian Timber and TUT Fitness

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

The idea behind Acadian Timber Corp and TUT Fitness 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.