Correlation Between Trans Lux and Track

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

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

Diversification Opportunities for Trans Lux and Track

0.0

Correlation Coefficient

Trans Lux  Track

Pay attention - limited upside

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

Pair Corralation between Trans Lux and Track

If you would invest  19.00  in Track Group on December 28, 2024 and sell it today you would earn a total of  4.00  from holding Track Group or generate 21.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Trans Lux Cp  vs.  Track Group

Trans Lux Cp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trans Lux Cp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Trans Lux is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Track Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Track Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental indicators, Track disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trans Lux and Track

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

The idea behind Trans Lux Cp and Track Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.