Correlation Between TR Property and Automatic Data

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

By analyzing existing cross correlation between TR Property Investment and Automatic Data Processing, you can compare the effects of market volatilities on TR Property and Automatic Data 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 TR Property with a short position of Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and Automatic Data.

Diversification Opportunities for TR Property and Automatic Data

0.31

Correlation Coefficient

TR Property  Automatic Data

Weak diversification

The 3 months correlation between TRY and Automatic is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing and TR Property 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 TR Property Investment are associated (or correlated) with Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of TR Property i.e., TR Property and Automatic Data go up and down completely randomly.

Pair Corralation between TR Property and Automatic Data

Assuming the 90 days trading horizon TR Property Investment is expected to generate 0.79 times more return on investment than Automatic Data. However, TR Property Investment is 1.27 times less risky than Automatic Data. It trades about 0.19 of its potential returns per unit of risk. Automatic Data Processing is currently generating about 0.06 per unit of risk. If you would invest  29,912  in TR Property Investment on April 23, 2025 and sell it today you would earn a total of  3,088  from holding TR Property Investment or generate 10.32% return on investment over 90 days.

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

TR Property Investment  vs.  Automatic Data Processing

TR Property Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TR Property Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, TR Property may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Automatic Data Processing

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Automatic Data Processing are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Automatic Data is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TR Property and Automatic Data

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

The idea behind TR Property Investment and Automatic Data Processing 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.