Correlation Between Trinity Place and Murano Global

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

By analyzing existing cross correlation between Trinity Place Holdings and Murano Global Investments, you can compare the effects of market volatilities on Trinity Place and Murano Global 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 Trinity Place with a short position of Murano Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trinity Place and Murano Global.

Diversification Opportunities for Trinity Place and Murano Global

-0.51

Correlation Coefficient

Trinity Place  Murano Global

Excellent diversification

The 3 months correlation between Trinity and Murano is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Place Holdings and Murano Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murano Global Investments and Trinity Place 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 Trinity Place Holdings are associated (or correlated) with Murano Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murano Global Investments has no effect on the direction of Trinity Place i.e., Trinity Place and Murano Global go up and down completely randomly.

Pair Corralation between Trinity Place and Murano Global

If you would invest  10.00  in Murano Global Investments on September 12, 2024 and sell it today you would earn a total of  12.00  from holding Murano Global Investments or generate 120.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.96%
Values	Daily Returns

Trinity Place Holdings  vs.  Murano Global Investments

Trinity Place Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trinity Place Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Trinity Place is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Murano Global Investments

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Murano Global Investments are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Murano Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trinity Place and Murano Global

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

The idea behind Trinity Place Holdings and Murano Global Investments 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.