Correlation Between All Things and TransAtlantic Capital

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

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

Diversification Opportunities for All Things and TransAtlantic Capital

0.0

Correlation Coefficient

All Things  TransAtlantic Capital

Pay attention - limited upside

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

Pair Corralation between All Things and TransAtlantic Capital

If you would invest  5.18  in All Things Mobile on December 21, 2024 and sell it today you would lose (0.08) from holding All Things Mobile or give up 1.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

All Things Mobile  vs.  TransAtlantic Capital

All Things Mobile

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in All Things Mobile are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak primary indicators, All Things may actually be approaching a critical reversion point that can send shares even higher in April 2025.

TransAtlantic Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days TransAtlantic Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, TransAtlantic Capital is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with All Things and TransAtlantic Capital

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

The idea behind All Things Mobile and TransAtlantic Capital 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.