Correlation Between Intelligent Group and Triumph Apparel

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

By analyzing existing cross correlation between Intelligent Group Limited and Triumph Apparel, you can compare the effects of market volatilities on Intelligent Group and Triumph Apparel 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 Intelligent Group with a short position of Triumph Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Group and Triumph Apparel.

Diversification Opportunities for Intelligent Group and Triumph Apparel

0.0

Correlation Coefficient

Intelligent Group  Triumph Apparel

Pay attention - limited upside

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

Pair Corralation between Intelligent Group and Triumph Apparel

If you would invest  0.01  in Triumph Apparel on December 25, 2024 and sell it today you would earn a total of  0.00  from holding Triumph Apparel or generate 0.0% return on investment over 90 days.

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

Intelligent Group Limited  vs.  Triumph Apparel

Intelligent Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intelligent Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Triumph Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triumph Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Triumph Apparel is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intelligent Group and Triumph Apparel

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

The idea behind Intelligent Group Limited and Triumph Apparel 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.