Correlation Between TCJH Old and Arbor Realty

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

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

Diversification Opportunities for TCJH Old and Arbor Realty

0.0

Correlation Coefficient

TCJH Old  Arbor Realty

Pay attention - limited upside

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

Pair Corralation between TCJH Old and Arbor Realty

If you would invest (100.00) in TCJH Old on December 17, 2024 and sell it today you would earn a total of  100.00  from holding TCJH Old or generate -100.0% return on investment over 90 days.

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

TCJH Old  vs.  Arbor Realty Trust

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.

Arbor Realty Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arbor Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's fundamental drivers remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with TCJH Old and Arbor Realty

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

The idea behind TCJH Old and Arbor Realty Trust 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.