Correlation Between TKH Group and HAL Trust

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

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

Diversification Opportunities for TKH Group and HAL Trust

0.91

Correlation Coefficient

TKH Group  HAL Trust

Almost no diversification

The 3 months correlation between TKH and HAL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding TKH Group NV and HAL Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAL Trust and TKH Group 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 TKH Group NV are associated (or correlated) with HAL Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAL Trust has no effect on the direction of TKH Group i.e., TKH Group and HAL Trust go up and down completely randomly.

Pair Corralation between TKH Group and HAL Trust

Assuming the 90 days trading horizon TKH Group NV is expected to generate 1.64 times more return on investment than HAL Trust. However, TKH Group is 1.64 times more volatile than HAL Trust. It trades about 0.2 of its potential returns per unit of risk. HAL Trust is currently generating about 0.23 per unit of risk. If you would invest  3,287  in TKH Group NV on April 21, 2025 and sell it today you would earn a total of  569.00  from holding TKH Group NV or generate 17.31% return on investment over 90 days.

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

TKH Group NV  vs.  HAL Trust

TKH Group NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TKH Group NV are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, TKH Group sustained solid returns over the last few months and may actually be approaching a breakup point.

HAL Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, HAL Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TKH Group and HAL Trust

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

The idea behind TKH Group NV and HAL Trust 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.