Correlation Between Teradata Corp and Temple Bar

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

Diversification Opportunities for Teradata Corp and Temple Bar

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Teradata and Temple is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Teradata Corp and Temple Bar Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temple Bar Investment and Teradata Corp 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 Teradata Corp are associated (or correlated) with Temple Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temple Bar Investment has no effect on the direction of Teradata Corp i.e., Teradata Corp and Temple Bar go up and down completely randomly.

Pair Corralation between Teradata Corp and Temple Bar

Assuming the 90 days trading horizon Teradata Corp is expected to generate 5.46 times less return on investment than Temple Bar. In addition to that, Teradata Corp is 2.78 times more volatile than Temple Bar Investment. It trades about 0.03 of its total potential returns per unit of risk. Temple Bar Investment is currently generating about 0.41 per unit of volatility. If you would invest  28,802  in Temple Bar Investment on April 24, 2025 and sell it today you would earn a total of  4,548  from holding Temple Bar Investment or generate 15.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy93.55%
ValuesDaily Returns

Teradata Corp  vs.  Temple Bar Investment

 Performance 
       Timeline  
Teradata Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Teradata Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Teradata Corp is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Temple Bar Investment 

Risk-Adjusted Performance

Very Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Temple Bar Investment are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Temple Bar unveiled solid returns over the last few months and may actually be approaching a breakup point.

Teradata Corp and Temple Bar Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teradata Corp and Temple Bar

The main advantage of trading using opposite Teradata Corp and Temple Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradata Corp position performs unexpectedly, Temple Bar 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 Temple Bar will offset losses from the drop in Temple Bar's long position.
The idea behind Teradata Corp and Temple Bar Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
CEOs Directory
Screen CEOs from public companies around the world
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA