Correlation Between Titan Cement and Dimand SA

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

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

Diversification Opportunities for Titan Cement and Dimand SA

-0.83

Correlation Coefficient

Titan Cement  Dimand SA

Pay attention - limited upside

The 3 months correlation between Titan and Dimand is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Titan Cement International and Dimand SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimand SA and Titan Cement 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 Titan Cement International are associated (or correlated) with Dimand SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimand SA has no effect on the direction of Titan Cement i.e., Titan Cement and Dimand SA go up and down completely randomly.

Pair Corralation between Titan Cement and Dimand SA

Assuming the 90 days trading horizon Titan Cement International is expected to under-perform the Dimand SA. But the stock apears to be less risky and, when comparing its historical volatility, Titan Cement International is 1.05 times less risky than Dimand SA. The stock trades about -0.11 of its potential returns per unit of risk. The Dimand SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  844.00  in Dimand SA on April 24, 2025 and sell it today you would earn a total of  122.00  from holding Dimand SA or generate 14.45% return on investment over 90 days.

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

Titan Cement International  vs.  Dimand SA

Titan Cement Interna

Risk-Adjusted Performance

Very Weak

Over the last 90 days Titan Cement International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain 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.

Dimand SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dimand SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Dimand SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Titan Cement and Dimand SA

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

The idea behind Titan Cement International and Dimand SA 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.