Correlation Between Cortus Metals and Tokyo Electron

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

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

Diversification Opportunities for Cortus Metals and Tokyo Electron

0.0

Correlation Coefficient

Cortus Metals  Tokyo Electron

Pay attention - limited upside

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

Pair Corralation between Cortus Metals and Tokyo Electron

If you would invest  14,825  in Tokyo Electron on December 20, 2024 and sell it today you would earn a total of  446.00  from holding Tokyo Electron or generate 3.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Cortus Metals  vs.  Tokyo Electron

Cortus Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cortus Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cortus Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Tokyo Electron

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tokyo Electron are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Tokyo Electron may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cortus Metals and Tokyo Electron

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

The idea behind Cortus Metals and Tokyo Electron 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.