Correlation Between Triad Group and Ion Beam

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

By analyzing existing cross correlation between Triad Group PLC and Ion Beam Applications, you can compare the effects of market volatilities on Triad Group and Ion Beam 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 Triad Group with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Ion Beam.

Diversification Opportunities for Triad Group and Ion Beam

0.0

Correlation Coefficient

Triad Group  Ion Beam

Pay attention - limited upside

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

Pair Corralation between Triad Group and Ion Beam

Assuming the 90 days trading horizon Triad Group PLC is expected to generate 0.96 times more return on investment than Ion Beam. However, Triad Group PLC is 1.04 times less risky than Ion Beam. It trades about 0.09 of its potential returns per unit of risk. Ion Beam Applications is currently generating about 0.0 per unit of risk. If you would invest  13,772  in Triad Group PLC on September 23, 2024 and sell it today you would earn a total of  14,228  from holding Triad Group PLC or generate 103.31% return on investment over 90 days.

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

Triad Group PLC  vs.  Ion Beam Applications

Triad Group PLC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triad Group PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Triad Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Ion Beam Applications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ion Beam is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Triad Group and Ion Beam

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

The idea behind Triad Group PLC and Ion Beam Applications 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.