Correlation Between Tutor Perini and Shimmick Common

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

By analyzing existing cross correlation between Tutor Perini and Shimmick Common, you can compare the effects of market volatilities on Tutor Perini and Shimmick Common 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 Tutor Perini with a short position of Shimmick Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tutor Perini and Shimmick Common.

Diversification Opportunities for Tutor Perini and Shimmick Common

-0.44

Correlation Coefficient

Tutor Perini  Shimmick Common

Very good diversification

The 3 months correlation between Tutor and Shimmick is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tutor Perini and Shimmick Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimmick Common and Tutor Perini 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 Tutor Perini are associated (or correlated) with Shimmick Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimmick Common has no effect on the direction of Tutor Perini i.e., Tutor Perini and Shimmick Common go up and down completely randomly.

Pair Corralation between Tutor Perini and Shimmick Common

Considering the 90-day investment horizon Tutor Perini is expected to generate 0.45 times more return on investment than Shimmick Common. However, Tutor Perini is 2.21 times less risky than Shimmick Common. It trades about 0.08 of its potential returns per unit of risk. Shimmick Common is currently generating about 0.01 per unit of risk. If you would invest  789.00  in Tutor Perini on September 30, 2024 and sell it today you would earn a total of  1,591  from holding Tutor Perini or generate 201.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	56.94%
Values	Daily Returns

Tutor Perini  vs.  Shimmick Common

Tutor Perini

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tutor Perini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Shimmick Common

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Tutor Perini and Shimmick Common

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

The idea behind Tutor Perini and Shimmick Common 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.