Correlation Between Trisura and Topaz Energy

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

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

Diversification Opportunities for Trisura and Topaz Energy

0.78

Correlation Coefficient

Trisura  Topaz Energy

Poor diversification

The 3 months correlation between Trisura and Topaz is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Trisura Group and Topaz Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topaz Energy Corp and Trisura 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 Trisura Group are associated (or correlated) with Topaz Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topaz Energy Corp has no effect on the direction of Trisura i.e., Trisura and Topaz Energy go up and down completely randomly.

Pair Corralation between Trisura and Topaz Energy

Assuming the 90 days trading horizon Trisura Group is expected to generate 1.4 times more return on investment than Topaz Energy. However, Trisura is 1.4 times more volatile than Topaz Energy Corp. It trades about 0.29 of its potential returns per unit of risk. Topaz Energy Corp is currently generating about 0.18 per unit of risk. If you would invest  3,477  in Trisura Group on April 20, 2025 and sell it today you would earn a total of  955.00  from holding Trisura Group or generate 27.47% return on investment over 90 days.

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

Trisura Group  vs.  Topaz Energy Corp

Trisura Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Trisura Group are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Trisura displayed solid returns over the last few months and may actually be approaching a breakup point.

Topaz Energy Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Topaz Energy Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Topaz Energy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Trisura and Topaz Energy

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

The idea behind Trisura Group and Topaz Energy Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.