Correlation Between Spectral Cap and TIS

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

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

Diversification Opportunities for Spectral Cap and TIS

0.45

Correlation Coefficient

Spectral Cap  TIS

Very weak diversification

The 3 months correlation between Spectral and TIS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Spectral Cap Corp and TIS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIS Inc and Spectral Cap 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 Spectral Cap Corp are associated (or correlated) with TIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIS Inc has no effect on the direction of Spectral Cap i.e., Spectral Cap and TIS go up and down completely randomly.

Pair Corralation between Spectral Cap and TIS

If you would invest  3,196  in TIS Inc on August 3, 2025 and sell it today you would earn a total of  0.00  from holding TIS Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Spectral Cap Corp  vs.  TIS Inc

Spectral Cap Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Spectral Cap Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Spectral Cap is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

TIS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days TIS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TIS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Spectral Cap and TIS

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

The idea behind Spectral Cap Corp and TIS Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.