Correlation Between Commander Resources and TUT Fitness

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

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

Diversification Opportunities for Commander Resources and TUT Fitness

0.0

Correlation Coefficient

Commander Resources  TUT Fitness

Pay attention - limited upside

The 3 months correlation between Commander and TUT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Commander Resources 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 Commander Resources 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 Commander Resources 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 Commander Resources i.e., Commander Resources and TUT Fitness go up and down completely randomly.

Pair Corralation between Commander Resources and TUT Fitness

Assuming the 90 days horizon Commander Resources is expected to generate 8.91 times less return on investment than TUT Fitness. But when comparing it to its historical volatility, Commander Resources is 5.29 times less risky than TUT Fitness. It trades about 0.03 of its potential returns per unit of risk. TUT Fitness Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  15.00  in TUT Fitness Group on October 25, 2024 and sell it today you would lose (7.00) from holding TUT Fitness Group or give up 46.67% of portfolio value over 90 days.

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

Commander Resources  vs.  TUT Fitness Group

Commander Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Commander Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Commander Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

TUT Fitness Group

Risk-Adjusted Performance

0 of 100

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 Commander Resources and TUT Fitness

The main advantage of trading using opposite Commander Resources and TUT Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commander Resources 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 Commander Resources 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.