Correlation Between Turning Point and EvoAir Holdings

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

By analyzing existing cross correlation between Turning Point Brands and EvoAir Holdings, you can compare the effects of market volatilities on Turning Point and EvoAir 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 Turning Point with a short position of EvoAir Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and EvoAir Holdings.

Diversification Opportunities for Turning Point and EvoAir Holdings

0.0

Correlation Coefficient

Turning Point  EvoAir Holdings

Pay attention - limited upside

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

Pair Corralation between Turning Point and EvoAir Holdings

If you would invest  6,319  in Turning Point Brands on December 4, 2024 and sell it today you would earn a total of  380.00  from holding Turning Point Brands or generate 6.01% return on investment over 90 days.

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

Turning Point Brands  vs.  EvoAir Holdings

Turning Point Brands

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turning Point Brands are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Turning Point may actually be approaching a critical reversion point that can send shares even higher in April 2025.

EvoAir Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days EvoAir Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, EvoAir Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Turning Point and EvoAir Holdings

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

The idea behind Turning Point Brands and EvoAir Holdings 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.