Correlation Between ChampionX and Tritent International

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

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

Diversification Opportunities for ChampionX and Tritent International

0.0

Correlation Coefficient

ChampionX  Tritent International

Pay attention - limited upside

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

Pair Corralation between ChampionX and Tritent International

Considering the 90-day investment horizon ChampionX is expected to generate 5094.25 times less return on investment than Tritent International. But when comparing it to its historical volatility, ChampionX is 23.72 times less risky than Tritent International. It trades about 0.0 of its potential returns per unit of risk. Tritent International Agriculture is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2.10  in Tritent International Agriculture on September 29, 2024 and sell it today you would earn a total of  6.10  from holding Tritent International Agriculture or generate 290.48% return on investment over 90 days.

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

ChampionX  vs.  Tritent International Agricult

ChampionX

Risk-Adjusted Performance

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Very Weak

Over the last 90 days ChampionX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Tritent International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Tritent International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ChampionX and Tritent International

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

The idea behind ChampionX and Tritent International Agriculture 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.