Correlation Between 4Imprint Group and Taylor Maritime

Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and Taylor Maritime 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 4Imprint Group and Taylor Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 4Imprint Group Plc and Taylor Maritime Investments, you can compare the effects of market volatilities on 4Imprint Group and Taylor Maritime 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 4Imprint Group with a short position of Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and Taylor Maritime.

Diversification Opportunities for 4Imprint Group and Taylor Maritime

-0.7

Correlation Coefficient

4Imprint Group  Taylor Maritime

Excellent diversification

The 3 months correlation between 4Imprint and Taylor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve and 4Imprint Group 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 4Imprint Group Plc are associated (or correlated) with Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and Taylor Maritime go up and down completely randomly.

Pair Corralation between 4Imprint Group and Taylor Maritime

Assuming the 90 days trading horizon 4Imprint Group Plc is expected to under-perform the Taylor Maritime. But the stock apears to be less risky and, when comparing its historical volatility, 4Imprint Group Plc is 1.27 times less risky than Taylor Maritime. The stock trades about -0.46 of its potential returns per unit of risk. The Taylor Maritime Investments is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest  6,814  in Taylor Maritime Investments on December 2, 2024 and sell it today you would lose (514.00) from holding Taylor Maritime Investments or give up 7.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

4Imprint Group Plc  vs.  Taylor Maritime Investments

4Imprint Group Plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 4Imprint Group Plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, 4Imprint Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Taylor Maritime Inve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Taylor Maritime Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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.

Pair Trading with 4Imprint Group and Taylor Maritime

The main advantage of trading using opposite 4Imprint Group and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.

The idea behind 4Imprint Group Plc and Taylor Maritime Investments 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.