Correlation Between Stingray and TECSYS

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

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

Diversification Opportunities for Stingray and TECSYS

-0.74

Correlation Coefficient

Stingray  TECSYS

Pay attention - limited upside

The 3 months correlation between Stingray and TECSYS is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Stingray Group and TECSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TECSYS Inc and Stingray 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 Stingray Group are associated (or correlated) with TECSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TECSYS Inc has no effect on the direction of Stingray i.e., Stingray and TECSYS go up and down completely randomly.

Pair Corralation between Stingray and TECSYS

Assuming the 90 days trading horizon Stingray Group is expected to generate 0.94 times more return on investment than TECSYS. However, Stingray Group is 1.07 times less risky than TECSYS. It trades about 0.14 of its potential returns per unit of risk. TECSYS Inc is currently generating about -0.03 per unit of risk. If you would invest  864.00  in Stingray Group on April 24, 2025 and sell it today you would earn a total of  172.00  from holding Stingray Group or generate 19.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Stingray Group  vs.  TECSYS Inc

Stingray Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stingray Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Stingray unveiled solid returns over the last few months and may actually be approaching a breakup point.

TECSYS Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Stingray and TECSYS

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

The idea behind Stingray Group and TECSYS 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.