Correlation Between Pet Valu and Trisura

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

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

Diversification Opportunities for Pet Valu and Trisura

0.0

Correlation Coefficient

Pet Valu  Trisura

Pay attention - limited upside

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

Pair Corralation between Pet Valu and Trisura

Assuming the 90 days trading horizon Pet Valu Holdings is expected to generate 1.12 times more return on investment than Trisura. However, Pet Valu is 1.12 times more volatile than Trisura Group. It trades about 0.05 of its potential returns per unit of risk. Trisura Group is currently generating about -0.11 per unit of risk. If you would invest  2,462  in Pet Valu Holdings on December 29, 2024 and sell it today you would earn a total of  144.00  from holding Pet Valu Holdings or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pet Valu Holdings  vs.  Trisura Group

Pet Valu Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pet Valu Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Pet Valu may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Trisura Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trisura Group 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.

Pair Trading with Pet Valu and Trisura

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

The idea behind Pet Valu Holdings and Trisura Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..