Correlation Between TSJA and US Global

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

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

Diversification Opportunities for TSJA and US Global

0.0

Correlation Coefficient

TSJA  US Global

Pay attention - limited upside

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

Pair Corralation between TSJA and US Global

If you would invest (100.00) in TSJA on December 26, 2024 and sell it today you would earn a total of  100.00  from holding TSJA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TSJA  vs.  US Global Sea

TSJA

Risk-Adjusted Performance

Very Weak

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

US Global Sea

Risk-Adjusted Performance

Very Weak

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

Pair Trading with TSJA and US Global

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

The idea behind TSJA and US Global Sea 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.