Correlation Between Teradyne and Triumph Apparel

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

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

Diversification Opportunities for Teradyne and Triumph Apparel

0.0

Correlation Coefficient

Teradyne  Triumph Apparel

Pay attention - limited upside

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

Pair Corralation between Teradyne and Triumph Apparel

If you would invest  11,703  in Teradyne on October 11, 2024 and sell it today you would earn a total of  2,012  from holding Teradyne or generate 17.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Teradyne  vs.  Triumph Apparel

Teradyne

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Teradyne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Teradyne may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Triumph Apparel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Teradyne and Triumph Apparel

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

The idea behind Teradyne and Triumph Apparel 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.