Correlation Between Penns Woods and Tytan Holdings

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

By analyzing existing cross correlation between Penns Woods Bancorp and Tytan Holdings, you can compare the effects of market volatilities on Penns Woods and Tytan Holdings 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 Penns Woods with a short position of Tytan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penns Woods and Tytan Holdings.

Diversification Opportunities for Penns Woods and Tytan Holdings

-0.77

Correlation Coefficient

Penns Woods  Tytan Holdings

Pay attention - limited upside

The 3 months correlation between Penns and Tytan is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Penns Woods Bancorp and Tytan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tytan Holdings and Penns Woods 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 Penns Woods Bancorp are associated (or correlated) with Tytan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tytan Holdings has no effect on the direction of Penns Woods i.e., Penns Woods and Tytan Holdings go up and down completely randomly.

Pair Corralation between Penns Woods and Tytan Holdings

Given the investment horizon of 90 days Penns Woods is expected to generate 24.52 times less return on investment than Tytan Holdings. But when comparing it to its historical volatility, Penns Woods Bancorp is 43.01 times less risky than Tytan Holdings. It trades about 0.17 of its potential returns per unit of risk. Tytan Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.40  in Tytan Holdings on September 29, 2024 and sell it today you would lose (0.38) from holding Tytan Holdings or give up 95.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Penns Woods Bancorp  vs.  Tytan Holdings

Penns Woods Bancorp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Penns Woods Bancorp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Penns Woods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Tytan Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tytan Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Penns Woods and Tytan Holdings

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

The idea behind Penns Woods Bancorp and Tytan Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.