Correlation Between Applied Materials, and Totally Hip

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

By analyzing existing cross correlation between Applied Materials, and Totally Hip Technologies, you can compare the effects of market volatilities on Applied Materials, and Totally Hip 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 Applied Materials, with a short position of Totally Hip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials, and Totally Hip.

Diversification Opportunities for Applied Materials, and Totally Hip

0.0

Correlation Coefficient

Applied Materials,  Totally Hip

Pay attention - limited upside

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

Pair Corralation between Applied Materials, and Totally Hip

If you would invest  1,781  in Applied Materials, on May 5, 2025 and sell it today you would earn a total of  265.00  from holding Applied Materials, or generate 14.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Applied Materials,  vs.  Totally Hip Technologies

Applied Materials,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Applied Materials, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Totally Hip Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Totally Hip Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Totally Hip is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Applied Materials, and Totally Hip

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

The idea behind Applied Materials, and Totally Hip Technologies 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.