Correlation Between Triumph Apparel and MYT Netherlands

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

By analyzing existing cross correlation between Triumph Apparel and MYT Netherlands Parent, you can compare the effects of market volatilities on Triumph Apparel and MYT Netherlands 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 Triumph Apparel with a short position of MYT Netherlands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Apparel and MYT Netherlands.

Diversification Opportunities for Triumph Apparel and MYT Netherlands

0.0

Correlation Coefficient

Triumph Apparel  MYT Netherlands

Pay attention - limited upside

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

Pair Corralation between Triumph Apparel and MYT Netherlands

If you would invest  1,151  in MYT Netherlands Parent on October 11, 2024 and sell it today you would lose (404.00) from holding MYT Netherlands Parent or give up 35.1% of portfolio value over 90 days.

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

Triumph Apparel  vs.  MYT Netherlands Parent

Triumph Apparel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triumph Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Triumph Apparel is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

MYT Netherlands Parent

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Triumph Apparel and MYT Netherlands

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

The idea behind Triumph Apparel and MYT Netherlands Parent 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .