Correlation Between TC Traders and CTEEP Companhia

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

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

Diversification Opportunities for TC Traders and CTEEP Companhia

0.14

Correlation Coefficient

TC Traders  CTEEP Companhia

Average diversification

The 3 months correlation between TRAD3 and CTEEP is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TC Traders Club and CTEEP Companhia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTEEP Companhia and TC Traders 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 TC Traders Club are associated (or correlated) with CTEEP Companhia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTEEP Companhia has no effect on the direction of TC Traders i.e., TC Traders and CTEEP Companhia go up and down completely randomly.

Pair Corralation between TC Traders and CTEEP Companhia

Assuming the 90 days trading horizon TC Traders Club is expected to generate 4.26 times more return on investment than CTEEP Companhia. However, TC Traders is 4.26 times more volatile than CTEEP Companhia. It trades about 0.04 of its potential returns per unit of risk. CTEEP Companhia is currently generating about 0.01 per unit of risk. If you would invest  715.00  in TC Traders Club on April 20, 2025 and sell it today you would earn a total of  34.00  from holding TC Traders Club or generate 4.76% return on investment over 90 days.

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

TC Traders Club  vs.  CTEEP Companhia

TC Traders Club

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TC Traders Club are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TC Traders may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CTEEP Companhia

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTEEP Companhia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CTEEP Companhia is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TC Traders and CTEEP Companhia

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

The idea behind TC Traders Club and CTEEP Companhia 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.

Check out your portfolio center.

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.