Correlation Between CTS and Maris Tech

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

By analyzing existing cross correlation between CTS Corporation and Maris Tech Ltd Warrants, you can compare the effects of market volatilities on CTS and Maris Tech 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 CTS with a short position of Maris Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS and Maris Tech.

Diversification Opportunities for CTS and Maris Tech

0.23

Correlation Coefficient

CTS  Maris Tech

Modest diversification

The 3 months correlation between CTS and Maris is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CTS Corp. and Maris Tech Ltd Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maris Tech Warrants and CTS 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 CTS Corporation are associated (or correlated) with Maris Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maris Tech Warrants has no effect on the direction of CTS i.e., CTS and Maris Tech go up and down completely randomly.

Pair Corralation between CTS and Maris Tech

Considering the 90-day investment horizon CTS Corporation is expected to generate 0.08 times more return on investment than Maris Tech. However, CTS Corporation is 11.94 times less risky than Maris Tech. It trades about -0.22 of its potential returns per unit of risk. Maris Tech Ltd Warrants is currently generating about -0.03 per unit of risk. If you would invest  5,279  in CTS Corporation on December 19, 2024 and sell it today you would lose (1,019) from holding CTS Corporation or give up 19.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	88.33%
Values	Daily Returns

CTS Corp.  vs.  Maris Tech Ltd Warrants

CTS Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTS Corporation 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 comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Maris Tech Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maris Tech Ltd Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward-looking signals remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CTS and Maris Tech

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

The idea behind CTS Corporation and Maris Tech Ltd Warrants 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.