Correlation Between Titan Machinery and GLOBUS MEDICAL

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Can any of the company-specific risk be diversified away by investing in both Titan Machinery and GLOBUS MEDICAL 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 Machinery and GLOBUS MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Machinery and GLOBUS MEDICAL A, you can compare the effects of market volatilities on Titan Machinery and GLOBUS MEDICAL 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 Machinery with a short position of GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and GLOBUS MEDICAL.

Diversification Opportunities for Titan Machinery and GLOBUS MEDICAL

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Titan and GLOBUS is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A and Titan Machinery 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 Machinery are associated (or correlated) with GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of Titan Machinery i.e., Titan Machinery and GLOBUS MEDICAL go up and down completely randomly.

Pair Corralation between Titan Machinery and GLOBUS MEDICAL

Assuming the 90 days horizon Titan Machinery is expected to under-perform the GLOBUS MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Titan Machinery is 1.15 times less risky than GLOBUS MEDICAL. The stock trades about -0.09 of its potential returns per unit of risk. The GLOBUS MEDICAL A is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  4,960  in GLOBUS MEDICAL A on September 11, 2025 and sell it today you would earn a total of  2,590  from holding GLOBUS MEDICAL A or generate 52.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Titan Machinery  vs.  GLOBUS MEDICAL A

 Performance 
       Timeline  
Titan Machinery 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Titan Machinery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
GLOBUS MEDICAL A 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GLOBUS MEDICAL A are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, GLOBUS MEDICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Titan Machinery and GLOBUS MEDICAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Titan Machinery and GLOBUS MEDICAL

The main advantage of trading using opposite Titan Machinery and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Machinery position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.
The idea behind Titan Machinery and GLOBUS MEDICAL A 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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