Correlation Between Tritent International and ChampionX

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

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

Diversification Opportunities for Tritent International and ChampionX

0.0

Correlation Coefficient

Tritent International  ChampionX

Pay attention - limited upside

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

Pair Corralation between Tritent International and ChampionX

Given the investment horizon of 90 days Tritent International Agriculture is expected to generate 23.72 times more return on investment than ChampionX. However, Tritent International is 23.72 times more volatile than ChampionX. It trades about 0.08 of its potential returns per unit of risk. ChampionX is currently generating about 0.0 per unit of risk. If you would invest  2.10  in Tritent International Agriculture on September 29, 2024 and sell it today you would earn a total of  6.10  from holding Tritent International Agriculture or generate 290.48% return on investment over 90 days.

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

Tritent International Agricult  vs.  ChampionX

Tritent International

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Tritent International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

ChampionX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChampionX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Tritent International and ChampionX

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

The idea behind Tritent International Agriculture and ChampionX 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.