Correlation Between TFLM and APT Systems

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

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

Diversification Opportunities for TFLM and APT Systems

0.0

Correlation Coefficient

TFLM  APT Systems

Pay attention - limited upside

The 3 months correlation between TFLM and APT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TFLM and APT Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Systems and TFLM 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 TFLM are associated (or correlated) with APT Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Systems has no effect on the direction of TFLM i.e., TFLM and APT Systems go up and down completely randomly.

Pair Corralation between TFLM and APT Systems

If you would invest (100.00) in APT Systems on August 26, 2025 and sell it today you would earn a total of  100.00  from holding APT Systems or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TFLM  vs.  APT Systems

TFLM

Risk-Adjusted Performance

Fair

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

APT Systems

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in APT Systems are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, APT Systems showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TFLM and APT Systems

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

The idea behind TFLM and APT Systems 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.