Correlation Between Savaria and Titanium Transportation

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

Diversification Opportunities for Savaria and Titanium Transportation

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Savaria and Titanium is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Savaria and Titanium Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titanium Transportation and Savaria 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 Savaria 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 Savaria i.e., Savaria and Titanium Transportation go up and down completely randomly.

Pair Corralation between Savaria and Titanium Transportation

Assuming the 90 days trading horizon Savaria is expected to generate 0.54 times more return on investment than Titanium Transportation. However, Savaria is 1.85 times less risky than Titanium Transportation. It trades about 0.06 of its potential returns per unit of risk. Titanium Transportation Group is currently generating about -0.09 per unit of risk. If you would invest  2,072  in Savaria on August 27, 2025 and sell it today you would earn a total of  80.00  from holding Savaria or generate 3.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Savaria  vs.  Titanium Transportation Group

 Performance 
       Timeline  
Savaria 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Savaria are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Savaria is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Titanium Transportation 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Titanium Transportation Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Savaria and Titanium Transportation Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Savaria and Titanium Transportation

The main advantage of trading using opposite Savaria and Titanium Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savaria 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 Savaria 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.
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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