Correlation Between Nano One and TC Energy

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

By analyzing existing cross correlation between Nano One Materials and TC Energy Corp, you can compare the effects of market volatilities on Nano One and TC Energy 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 Nano One with a short position of TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano One and TC Energy.

Diversification Opportunities for Nano One and TC Energy

0.3

Correlation Coefficient

Nano One  TC Energy

Weak diversification

The 3 months correlation between Nano and TRP-PF is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nano One Materials and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp and Nano One 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 Nano One Materials are associated (or correlated) with TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Nano One i.e., Nano One and TC Energy go up and down completely randomly.

Pair Corralation between Nano One and TC Energy

Assuming the 90 days trading horizon Nano One Materials is expected to under-perform the TC Energy. In addition to that, Nano One is 5.49 times more volatile than TC Energy Corp. It trades about -0.09 of its total potential returns per unit of risk. TC Energy Corp is currently generating about 0.01 per unit of volatility. If you would invest  1,724  in TC Energy Corp on December 21, 2024 and sell it today you would earn a total of  6.00  from holding TC Energy Corp or generate 0.35% return on investment over 90 days.

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

Nano One Materials  vs.  TC Energy Corp

Nano One Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano One Materials 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

TC Energy Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Nano One and TC Energy

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

The idea behind Nano One Materials and TC Energy Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..