Correlation Between SECURITAS and TTM TECHNOLOGIES

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

By analyzing existing cross correlation between SECURITAS B and TTM TECHNOLOGIES, you can compare the effects of market volatilities on SECURITAS and TTM TECHNOLOGIES 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 SECURITAS with a short position of TTM TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURITAS and TTM TECHNOLOGIES.

Diversification Opportunities for SECURITAS and TTM TECHNOLOGIES

0.0

Correlation Coefficient

SECURITAS  TTM TECHNOLOGIES

Pay attention - limited upside

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

Pair Corralation between SECURITAS and TTM TECHNOLOGIES

If you would invest  1,190  in SECURITAS B on December 22, 2024 and sell it today you would earn a total of  129.00  from holding SECURITAS B or generate 10.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SECURITAS B   vs.  TTM TECHNOLOGIES

SECURITAS B

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SECURITAS B are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SECURITAS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

TTM TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SECURITAS and TTM TECHNOLOGIES

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

The idea behind SECURITAS B and TTM TECHNOLOGIES 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..