Correlation Between Trimax Corp and Atlantic Energy

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

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

Diversification Opportunities for Trimax Corp and Atlantic Energy

0.01

Correlation Coefficient

Trimax Corp  Atlantic Energy

Significant diversification

The 3 months correlation between Trimax and Atlantic is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Trimax Corp and Atlantic Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Energy Solutions and Trimax Corp 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 Trimax Corp are associated (or correlated) with Atlantic Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Energy Solutions has no effect on the direction of Trimax Corp i.e., Trimax Corp and Atlantic Energy go up and down completely randomly.

Pair Corralation between Trimax Corp and Atlantic Energy

Given the investment horizon of 90 days Trimax Corp is expected to generate 1.19 times more return on investment than Atlantic Energy. However, Trimax Corp is 1.19 times more volatile than Atlantic Energy Solutions. It trades about 0.09 of its potential returns per unit of risk. Atlantic Energy Solutions is currently generating about 0.09 per unit of risk. If you would invest  0.17  in Trimax Corp on September 3, 2024 and sell it today you would lose (0.03) from holding Trimax Corp or give up 17.65% of portfolio value over 90 days.

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

Trimax Corp  vs.  Atlantic Energy Solutions

Trimax Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trimax Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Trimax Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Atlantic Energy Solutions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Energy Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Atlantic Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trimax Corp and Atlantic Energy

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

The idea behind Trimax Corp and Atlantic Energy Solutions 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.