Correlation Between Anaergia and Trisura

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

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

Diversification Opportunities for Anaergia and Trisura

-0.8

Correlation Coefficient

Anaergia  Trisura

Pay attention - limited upside

The 3 months correlation between Anaergia and Trisura is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anaergia and Trisura Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisura Group and Anaergia 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 Anaergia are associated (or correlated) with Trisura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisura Group has no effect on the direction of Anaergia i.e., Anaergia and Trisura go up and down completely randomly.

Pair Corralation between Anaergia and Trisura

Assuming the 90 days trading horizon Anaergia is expected to generate 2.73 times more return on investment than Trisura. However, Anaergia is 2.73 times more volatile than Trisura Group. It trades about 0.05 of its potential returns per unit of risk. Trisura Group is currently generating about -0.15 per unit of risk. If you would invest  93.00  in Anaergia on December 2, 2024 and sell it today you would earn a total of  8.00  from holding Anaergia or generate 8.6% return on investment over 90 days.

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

Anaergia  vs.  Trisura Group

Anaergia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Anaergia displayed solid returns over the last few months and may actually be approaching a breakup point.

Trisura Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trisura Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Anaergia and Trisura

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

The idea behind Anaergia and Trisura 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.