Correlation Between TMC The and Burnham Holdings

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

By analyzing existing cross correlation between TMC the metals and Burnham Holdings PFD, you can compare the effects of market volatilities on TMC The and Burnham Holdings 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 TMC The with a short position of Burnham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMC The and Burnham Holdings.

Diversification Opportunities for TMC The and Burnham Holdings

0.73

Correlation Coefficient

TMC The  Burnham Holdings

Poor diversification

The 3 months correlation between TMC and Burnham is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding TMC the metals and Burnham Holdings PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burnham Holdings PFD and TMC The 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 TMC the metals are associated (or correlated) with Burnham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burnham Holdings PFD has no effect on the direction of TMC The i.e., TMC The and Burnham Holdings go up and down completely randomly.

Pair Corralation between TMC The and Burnham Holdings

If you would invest  7.50  in TMC the metals on October 23, 2024 and sell it today you would earn a total of  10.50  from holding TMC the metals or generate 140.0% return on investment over 90 days.

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

TMC the metals  vs.  Burnham Holdings PFD

TMC the metals

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TMC the metals are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, TMC The showed solid returns over the last few months and may actually be approaching a breakup point.

Burnham Holdings PFD

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Burnham Holdings PFD are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Burnham Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with TMC The and Burnham Holdings

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

The idea behind TMC the metals and Burnham Holdings PFD 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.