Correlation Between STF Tactical and Connexus Corp

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

By analyzing existing cross correlation between STF Tactical Growth and Connexus Corp, you can compare the effects of market volatilities on STF Tactical and Connexus Corp 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 STF Tactical with a short position of Connexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of STF Tactical and Connexus Corp.

Diversification Opportunities for STF Tactical and Connexus Corp

0.0

Correlation Coefficient

STF Tactical  Connexus Corp

Pay attention - limited upside

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

Pair Corralation between STF Tactical and Connexus Corp

If you would invest  3,245  in STF Tactical Growth on September 16, 2024 and sell it today you would earn a total of  390.00  from holding STF Tactical Growth or generate 12.02% return on investment over 90 days.

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

STF Tactical Growth  vs.  Connexus Corp

STF Tactical Growth

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in STF Tactical Growth are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, STF Tactical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Connexus Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Connexus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Connexus Corp 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 STF Tactical and Connexus Corp

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

The idea behind STF Tactical Growth and Connexus Corp 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.