Correlation Between TITANIUM TRANSPORTGROUP and Compagnie

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

By analyzing existing cross correlation between TITANIUM TRANSPORTGROUP and Compagnie de Saint Gobain, you can compare the effects of market volatilities on TITANIUM TRANSPORTGROUP and Compagnie 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 TITANIUM TRANSPORTGROUP with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITANIUM TRANSPORTGROUP and Compagnie.

Diversification Opportunities for TITANIUM TRANSPORTGROUP and Compagnie

-0.77

Correlation Coefficient

TITANIUM TRANSPORTGROUP  Compagnie

Pay attention - limited upside

The 3 months correlation between TITANIUM and Compagnie is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding TITANIUM TRANSPORTGROUP and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of TITANIUM TRANSPORTGROUP i.e., TITANIUM TRANSPORTGROUP and Compagnie go up and down completely randomly.

Pair Corralation between TITANIUM TRANSPORTGROUP and Compagnie

Assuming the 90 days horizon TITANIUM TRANSPORTGROUP is expected to under-perform the Compagnie. In addition to that, TITANIUM TRANSPORTGROUP is 1.26 times more volatile than Compagnie de Saint Gobain. It trades about -0.26 of its total potential returns per unit of risk. Compagnie de Saint Gobain is currently generating about 0.09 per unit of volatility. If you would invest  8,572  in Compagnie de Saint Gobain on December 28, 2024 and sell it today you would earn a total of  1,088  from holding Compagnie de Saint Gobain or generate 12.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

TITANIUM TRANSPORTGROUP  vs.  Compagnie de Saint Gobain

TITANIUM TRANSPORTGROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days TITANIUM TRANSPORTGROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Compagnie de Saint

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie de Saint Gobain are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, Compagnie sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TITANIUM TRANSPORTGROUP and Compagnie

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

The idea behind TITANIUM TRANSPORTGROUP and Compagnie de Saint Gobain 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .