Correlation Between TECSYS and Real Matters

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

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

Diversification Opportunities for TECSYS and Real Matters

-0.58

Correlation Coefficient

TECSYS  Real Matters

Excellent diversification

The 3 months correlation between TECSYS and Real is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding TECSYS Inc and Real Matters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Matters and TECSYS 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 TECSYS Inc are associated (or correlated) with Real Matters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Matters has no effect on the direction of TECSYS i.e., TECSYS and Real Matters go up and down completely randomly.

Pair Corralation between TECSYS and Real Matters

Assuming the 90 days trading horizon TECSYS Inc is expected to generate 0.72 times more return on investment than Real Matters. However, TECSYS Inc is 1.39 times less risky than Real Matters. It trades about 0.06 of its potential returns per unit of risk. Real Matters is currently generating about -0.06 per unit of risk. If you would invest  4,234  in TECSYS Inc on September 3, 2024 and sell it today you would earn a total of  243.00  from holding TECSYS Inc or generate 5.74% return on investment over 90 days.

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

TECSYS Inc  vs.  Real Matters

TECSYS Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TECSYS Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TECSYS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Real Matters

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Real Matters has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with TECSYS and Real Matters

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

The idea behind TECSYS Inc and Real Matters 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.