Correlation Between Symbotic and TLG Acquisition

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

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

Diversification Opportunities for Symbotic and TLG Acquisition

0.28

Correlation Coefficient

Symbotic  TLG Acquisition

Modest diversification

The 3 months correlation between Symbotic and TLG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Symbotic and TLG Acquisition One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLG Acquisition One and Symbotic 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 Symbotic are associated (or correlated) with TLG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLG Acquisition One has no effect on the direction of Symbotic i.e., Symbotic and TLG Acquisition go up and down completely randomly.

Pair Corralation between Symbotic and TLG Acquisition

If you would invest  2,241  in Symbotic on September 16, 2024 and sell it today you would earn a total of  446.00  from holding Symbotic or generate 19.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.54%
Values	Daily Returns

Symbotic  vs.  TLG Acquisition One

Symbotic

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Symbotic are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Symbotic displayed solid returns over the last few months and may actually be approaching a breakup point.

TLG Acquisition One

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Symbotic and TLG Acquisition

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

The idea behind Symbotic and TLG Acquisition One 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.