Correlation Between Titan Machinery and MQGAU

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

By analyzing existing cross correlation between Titan Machinery and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Titan Machinery and MQGAU 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 Machinery with a short position of MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and MQGAU.

Diversification Opportunities for Titan Machinery and MQGAU

-0.22

Correlation Coefficient

Titan Machinery  MQGAU

Very good diversification

The 3 months correlation between Titan and MQGAU is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 and Titan Machinery 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 Machinery are associated (or correlated) with MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Titan Machinery i.e., Titan Machinery and MQGAU go up and down completely randomly.

Pair Corralation between Titan Machinery and MQGAU

Given the investment horizon of 90 days Titan Machinery is expected to generate 31.68 times more return on investment than MQGAU. However, Titan Machinery is 31.68 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.1 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about 0.13 per unit of risk. If you would invest  1,331  in Titan Machinery on September 13, 2024 and sell it today you would earn a total of  223.00  from holding Titan Machinery or generate 16.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	31.75%
Values	Daily Returns

Titan Machinery  vs.  MQGAU 5376057 23 SEP 27

Titan Machinery

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Titan Machinery are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Titan Machinery displayed solid returns over the last few months and may actually be approaching a breakup point.

MQGAU 5376057 23

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 5376057 23 SEP 27 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Titan Machinery and MQGAU

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

The idea behind Titan Machinery and MQGAU 5376057 23 SEP 27 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.