Correlation Between Titan Mining and SmartCentres Real

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

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

Diversification Opportunities for Titan Mining and SmartCentres Real

-0.62

Correlation Coefficient

Titan Mining  SmartCentres Real

Excellent diversification

The 3 months correlation between Titan and SmartCentres is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Titan Mining Corp and SmartCentres Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartCentres Real Estate and Titan Mining 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 Titan Mining Corp are associated (or correlated) with SmartCentres Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartCentres Real Estate has no effect on the direction of Titan Mining i.e., Titan Mining and SmartCentres Real go up and down completely randomly.

Pair Corralation between Titan Mining and SmartCentres Real

Assuming the 90 days horizon Titan Mining Corp is expected to under-perform the SmartCentres Real. In addition to that, Titan Mining is 6.34 times more volatile than SmartCentres Real Estate. It trades about -0.05 of its total potential returns per unit of risk. SmartCentres Real Estate is currently generating about -0.06 per unit of volatility. If you would invest  2,535  in SmartCentres Real Estate on September 26, 2024 and sell it today you would lose (62.00) from holding SmartCentres Real Estate or give up 2.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Titan Mining Corp  vs.  SmartCentres Real Estate

Titan Mining Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Titan Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Titan Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

SmartCentres Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SmartCentres Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Titan Mining and SmartCentres Real

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

The idea behind Titan Mining Corp and SmartCentres Real Estate 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.

Check out your portfolio center.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.