Correlation Between OFFICIAL TRUMP and Core

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

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

Diversification Opportunities for OFFICIAL TRUMP and Core

0.9

Correlation Coefficient

OFFICIAL TRUMP  Core

Almost no diversification

The 3 months correlation between OFFICIAL and Core is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding OFFICIAL TRUMP and Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core and OFFICIAL TRUMP 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 OFFICIAL TRUMP are associated (or correlated) with Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core has no effect on the direction of OFFICIAL TRUMP i.e., OFFICIAL TRUMP and Core go up and down completely randomly.

Pair Corralation between OFFICIAL TRUMP and Core

Assuming the 90 days trading horizon OFFICIAL TRUMP is expected to under-perform the Core. In addition to that, OFFICIAL TRUMP is 1.33 times more volatile than Core. It trades about -0.04 of its total potential returns per unit of risk. Core is currently generating about -0.04 per unit of volatility. If you would invest  66.00  in Core on April 22, 2025 and sell it today you would lose (11.00) from holding Core or give up 16.67% of portfolio value over 90 days.

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

OFFICIAL TRUMP  vs.  Core

OFFICIAL TRUMP

Risk-Adjusted Performance

Very Weak

Over the last 90 days OFFICIAL TRUMP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for OFFICIAL TRUMP shareholders.

Core

Risk-Adjusted Performance

Very Weak

Over the last 90 days Core has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Core shareholders.

Pair Trading with OFFICIAL TRUMP and Core

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

The idea behind OFFICIAL TRUMP and Core 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.