Correlation Between Ticon Freehold and Amata Summit

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

By analyzing existing cross correlation between Ticon Freehold and and Amata Summit Growth, you can compare the effects of market volatilities on Ticon Freehold and Amata Summit 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 Ticon Freehold with a short position of Amata Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ticon Freehold and Amata Summit.

Diversification Opportunities for Ticon Freehold and Amata Summit

0.2

Correlation Coefficient

Ticon Freehold  Amata Summit

Modest diversification

The 3 months correlation between Ticon and Amata is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ticon Freehold and and Amata Summit Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Summit Growth and Ticon Freehold 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 Ticon Freehold and are associated (or correlated) with Amata Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Summit Growth has no effect on the direction of Ticon Freehold i.e., Ticon Freehold and Amata Summit go up and down completely randomly.

Pair Corralation between Ticon Freehold and Amata Summit

Assuming the 90 days trading horizon Ticon Freehold is expected to generate 1.02 times less return on investment than Amata Summit. In addition to that, Ticon Freehold is 1.55 times more volatile than Amata Summit Growth. It trades about 0.04 of its total potential returns per unit of risk. Amata Summit Growth is currently generating about 0.07 per unit of volatility. If you would invest  585.00  in Amata Summit Growth on April 23, 2025 and sell it today you would earn a total of  25.00  from holding Amata Summit Growth or generate 4.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ticon Freehold and  vs.  Amata Summit Growth

Ticon Freehold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ticon Freehold and are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ticon Freehold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amata Summit Growth

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amata Summit Growth are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Amata Summit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ticon Freehold and Amata Summit

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

The idea behind Ticon Freehold and and Amata Summit Growth 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.