Correlation Between Triboron International and Polygiene

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

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

Diversification Opportunities for Triboron International and Polygiene

-0.76

Correlation Coefficient

Triboron International  Polygiene

Pay attention - limited upside

The 3 months correlation between Triboron and Polygiene is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Triboron International AB and Polygiene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygiene AB and Triboron International 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 Triboron International AB are associated (or correlated) with Polygiene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygiene AB has no effect on the direction of Triboron International i.e., Triboron International and Polygiene go up and down completely randomly.

Pair Corralation between Triboron International and Polygiene

Assuming the 90 days trading horizon Triboron International AB is expected to under-perform the Polygiene. In addition to that, Triboron International is 1.05 times more volatile than Polygiene AB. It trades about -0.05 of its total potential returns per unit of risk. Polygiene AB is currently generating about 0.08 per unit of volatility. If you would invest  1,040  in Polygiene AB on October 20, 2024 and sell it today you would earn a total of  320.00  from holding Polygiene AB or generate 30.77% return on investment over 90 days.

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

Triboron International AB  vs.  Polygiene AB

Triboron International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triboron International AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Polygiene AB

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Polygiene AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Polygiene unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triboron International and Polygiene

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

The idea behind Triboron International AB and Polygiene AB 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.