Correlation Between Stonex and TCJH Old

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

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

Diversification Opportunities for Stonex and TCJH Old

0.0

Correlation Coefficient

Stonex  TCJH Old

Pay attention - limited upside

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

Pair Corralation between Stonex and TCJH Old

If you would invest  8,619  in Stonex Group on November 19, 2024 and sell it today you would earn a total of  3,105  from holding Stonex Group or generate 36.03% return on investment over 90 days.

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

Stonex Group  vs.  TCJH Old

Stonex Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stonex Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Stonex showed solid returns over the last few months and may actually be approaching a breakup point.

TCJH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days TCJH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward-looking indicators, TCJH Old is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Stonex and TCJH Old

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

The idea behind Stonex Group and TCJH Old 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 Commodity Directory module to find actively traded commodities issued by global exchanges.