Correlation Between Global Partners and Tytan Holdings

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

By analyzing existing cross correlation between Global Partners LP and Tytan Holdings, you can compare the effects of market volatilities on Global Partners and Tytan Holdings 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 Global Partners with a short position of Tytan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and Tytan Holdings.

Diversification Opportunities for Global Partners and Tytan Holdings

-0.45

Correlation Coefficient

Global Partners  Tytan Holdings

Very good diversification

The 3 months correlation between Global and Tytan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and Tytan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tytan Holdings and Global Partners 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 Global Partners LP are associated (or correlated) with Tytan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tytan Holdings has no effect on the direction of Global Partners i.e., Global Partners and Tytan Holdings go up and down completely randomly.

Pair Corralation between Global Partners and Tytan Holdings

If you would invest  0.02  in Tytan Holdings on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Tytan Holdings or generate 0.0% return on investment over 90 days.

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

Global Partners LP  vs.  Tytan Holdings

Global Partners LP

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Partners LP are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Global Partners is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Tytan Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tytan Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Tytan Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global Partners and Tytan Holdings

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

The idea behind Global Partners LP and Tytan Holdings 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.