Correlation Between TAC Consumer and Winner Group

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

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

Diversification Opportunities for TAC Consumer and Winner Group

0.65

Correlation Coefficient

TAC Consumer  Winner Group

Poor diversification

The 3 months correlation between TAC and Winner is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding TAC Consumer Public and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise and TAC Consumer 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 TAC Consumer Public are associated (or correlated) with Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of TAC Consumer i.e., TAC Consumer and Winner Group go up and down completely randomly.

Pair Corralation between TAC Consumer and Winner Group

Assuming the 90 days trading horizon TAC Consumer is expected to generate 1.26 times less return on investment than Winner Group. In addition to that, TAC Consumer is 1.01 times more volatile than Winner Group Enterprise. It trades about 0.14 of its total potential returns per unit of risk. Winner Group Enterprise is currently generating about 0.17 per unit of volatility. If you would invest  188.00  in Winner Group Enterprise on April 24, 2025 and sell it today you would earn a total of  20.00  from holding Winner Group Enterprise or generate 10.64% return on investment over 90 days.

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

TAC Consumer Public  vs.  Winner Group Enterprise

TAC Consumer Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TAC Consumer Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, TAC Consumer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Winner Group Enterprise

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Winner Group Enterprise are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Winner Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TAC Consumer and Winner Group

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

The idea behind TAC Consumer Public and Winner Group Enterprise 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.