Correlation Between Triumph Financial and FFD Financial

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

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

Diversification Opportunities for Triumph Financial and FFD Financial

0.43

Correlation Coefficient

Triumph Financial  FFD Financial

Very weak diversification

The 3 months correlation between Triumph and FFD is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Financial and FFD Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFD Financial Corp and Triumph Financial 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 Triumph Financial are associated (or correlated) with FFD Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFD Financial Corp has no effect on the direction of Triumph Financial i.e., Triumph Financial and FFD Financial go up and down completely randomly.

Pair Corralation between Triumph Financial and FFD Financial

If you would invest  8,282  in Triumph Financial on September 15, 2024 and sell it today you would earn a total of  1,774  from holding Triumph Financial or generate 21.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Triumph Financial  vs.  FFD Financial Corp

Triumph Financial

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Triumph Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Triumph Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

FFD Financial Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FFD Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, FFD Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Triumph Financial and FFD Financial

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

The idea behind Triumph Financial and FFD Financial Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..