Correlation Between Tesla and Titanium Transportation

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

By analyzing existing cross correlation between Tesla Inc CDR and Titanium Transportation Group, you can compare the effects of market volatilities on Tesla and Titanium Transportation 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 Tesla with a short position of Titanium Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Titanium Transportation.

Diversification Opportunities for Tesla and Titanium Transportation

0.66

Correlation Coefficient

Tesla  Titanium Transportation

Poor diversification

The 3 months correlation between Tesla and Titanium is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc CDR and Titanium Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titanium Transportation and Tesla 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 Tesla Inc CDR are associated (or correlated) with Titanium Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titanium Transportation has no effect on the direction of Tesla i.e., Tesla and Titanium Transportation go up and down completely randomly.

Pair Corralation between Tesla and Titanium Transportation

Assuming the 90 days trading horizon Tesla Inc CDR is expected to generate 1.07 times more return on investment than Titanium Transportation. However, Tesla is 1.07 times more volatile than Titanium Transportation Group. It trades about 0.16 of its potential returns per unit of risk. Titanium Transportation Group is currently generating about 0.05 per unit of risk. If you would invest  2,136  in Tesla Inc CDR on April 22, 2025 and sell it today you would earn a total of  804.00  from holding Tesla Inc CDR or generate 37.64% return on investment over 90 days.

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

Tesla Inc CDR  vs.  Titanium Transportation Group

Tesla Inc CDR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tesla Inc CDR are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Tesla exhibited solid returns over the last few months and may actually be approaching a breakup point.

Titanium Transportation

Risk-Adjusted Performance

Modest

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

Pair Trading with Tesla and Titanium Transportation

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

The idea behind Tesla Inc CDR and Titanium Transportation Group 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.