Correlation Between Titan Petrochemicals and Public Service

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

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

Diversification Opportunities for Titan Petrochemicals and Public Service

0.0

Correlation Coefficient

Titan Petrochemicals  Public Service

Pay attention - limited upside

The 3 months correlation between Titan and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Titan Petrochemicals Group and Public Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service and Titan Petrochemicals 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 Titan Petrochemicals Group are associated (or correlated) with Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service has no effect on the direction of Titan Petrochemicals i.e., Titan Petrochemicals and Public Service go up and down completely randomly.

Pair Corralation between Titan Petrochemicals and Public Service

If you would invest  7,521  in Public Service on May 4, 2024 and sell it today you would earn a total of  79.00  from holding Public Service or generate 1.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	88.52%
Values	Daily Returns

Titan Petrochemicals Group  vs.  Public Service

Titan Petrochemicals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Titan Petrochemicals Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Titan Petrochemicals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Public Service

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Public Service are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Public Service is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Titan Petrochemicals and Public Service

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

The idea behind Titan Petrochemicals Group and Public Service 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.