Correlation Between TCI and Chlitina Holding

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

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

Diversification Opportunities for TCI and Chlitina Holding

0.92

Correlation Coefficient

TCI  Chlitina Holding

Almost no diversification

The 3 months correlation between TCI and Chlitina is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding TCI Co and Chlitina Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chlitina Holding and TCI 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 TCI Co are associated (or correlated) with Chlitina Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chlitina Holding has no effect on the direction of TCI i.e., TCI and Chlitina Holding go up and down completely randomly.

Pair Corralation between TCI and Chlitina Holding

Assuming the 90 days trading horizon TCI Co is expected to generate 0.6 times more return on investment than Chlitina Holding. However, TCI Co is 1.66 times less risky than Chlitina Holding. It trades about -0.09 of its potential returns per unit of risk. Chlitina Holding is currently generating about -0.19 per unit of risk. If you would invest  13,550  in TCI Co on September 27, 2024 and sell it today you would lose (1,000.00) from holding TCI Co or give up 7.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

TCI Co  vs.  Chlitina Holding

TCI Co

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TCI Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Chlitina Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chlitina Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with TCI and Chlitina Holding

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

The idea behind TCI Co and Chlitina Holding 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..