Correlation Between Titan Company and Saul Centers

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Titan Company and Saul Centers 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 Titan Company and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Company Limited and Saul Centers, you can compare the effects of market volatilities on Titan Company and Saul Centers 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 Titan Company with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Company and Saul Centers.

Diversification Opportunities for Titan Company and Saul Centers

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between Titan and Saul is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Titan Company Limited and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Titan Company 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 Titan Company Limited are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Titan Company i.e., Titan Company and Saul Centers go up and down completely randomly.

Pair Corralation between Titan Company and Saul Centers

Assuming the 90 days trading horizon Titan Company Limited is expected to under-perform the Saul Centers. In addition to that, Titan Company is 1.1 times more volatile than Saul Centers. It trades about -0.12 of its total potential returns per unit of risk. Saul Centers is currently generating about 0.1 per unit of volatility. If you would invest  2,143  in Saul Centers on September 3, 2024 and sell it today you would earn a total of  157.00  from holding Saul Centers or generate 7.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

Titan Company Limited  vs.  Saul Centers

 Performance 
       Timeline  
Titan Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Titan Company Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak 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.
Saul Centers 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Saul Centers are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Saul Centers may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Titan Company and Saul Centers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Titan Company and Saul Centers

The main advantage of trading using opposite Titan Company and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Company position performs unexpectedly, Saul Centers 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 Saul Centers will offset losses from the drop in Saul Centers' long position.
The idea behind Titan Company Limited and Saul Centers 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.
Check out your portfolio center.
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope