Correlation Between Tinna Rubber and LLOYDS METALS

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

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

Diversification Opportunities for Tinna Rubber and LLOYDS METALS

-0.38

Correlation Coefficient

Tinna Rubber  LLOYDS METALS

Very good diversification

The 3 months correlation between Tinna and LLOYDS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tinna Rubber and and LLOYDS METALS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS METALS AND and Tinna Rubber 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 Tinna Rubber and are associated (or correlated) with LLOYDS METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS METALS AND has no effect on the direction of Tinna Rubber i.e., Tinna Rubber and LLOYDS METALS go up and down completely randomly.

Pair Corralation between Tinna Rubber and LLOYDS METALS

Assuming the 90 days trading horizon Tinna Rubber and is expected to under-perform the LLOYDS METALS. But the stock apears to be less risky and, when comparing its historical volatility, Tinna Rubber and is 1.16 times less risky than LLOYDS METALS. The stock trades about -0.07 of its potential returns per unit of risk. The LLOYDS METALS AND is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  131,672  in LLOYDS METALS AND on April 23, 2025 and sell it today you would earn a total of  21,268  from holding LLOYDS METALS AND or generate 16.15% return on investment over 90 days.

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

Tinna Rubber and  vs.  LLOYDS METALS AND

Tinna Rubber

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tinna Rubber and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

LLOYDS METALS AND

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LLOYDS METALS AND are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, LLOYDS METALS displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tinna Rubber and LLOYDS METALS

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

The idea behind Tinna Rubber and and LLOYDS METALS AND 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.