Correlation Between Trellus Health and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Trellus Health and Roebuck Food 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 Trellus Health and Roebuck Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trellus Health plc and Roebuck Food Group, you can compare the effects of market volatilities on Trellus Health and Roebuck Food 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 Trellus Health with a short position of Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trellus Health and Roebuck Food.
Diversification Opportunities for Trellus Health and Roebuck Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trellus and Roebuck is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Trellus Health plc and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group and Trellus Health 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 Trellus Health plc are associated (or correlated) with Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Trellus Health i.e., Trellus Health and Roebuck Food go up and down completely randomly.
Pair Corralation between Trellus Health and Roebuck Food
Assuming the 90 days trading horizon Trellus Health plc is expected to generate 202.82 times more return on investment than Roebuck Food. However, Trellus Health is 202.82 times more volatile than Roebuck Food Group. It trades about 0.11 of its potential returns per unit of risk. Roebuck Food Group is currently generating about 0.15 per unit of risk. If you would invest 68.00 in Trellus Health plc on October 22, 2024 and sell it today you would earn a total of 172.00 from holding Trellus Health plc or generate 252.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Trellus Health plc vs. Roebuck Food Group
Performance |
Timeline |
Trellus Health plc |
Roebuck Food Group |
Trellus Health and Roebuck Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trellus Health and Roebuck Food
The main advantage of trading using opposite Trellus Health and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trellus Health position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.Trellus Health vs. BlackRock Frontiers Investment | Trellus Health vs. Vietnam Enterprise Investments | Trellus Health vs. Mobius Investment Trust | Trellus Health vs. New Residential Investment |
Roebuck Food vs. Software Circle plc | Roebuck Food vs. Arrow Electronics | Roebuck Food vs. DXC Technology Co | Roebuck Food vs. Oxford Technology 2 |
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.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |