Correlation Between Branded Legacy and Trident Brands

Can any of the company-specific risk be diversified away by investing in both Branded Legacy and Trident Brands 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 Branded Legacy and Trident Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Branded Legacy and Trident Brands, you can compare the effects of market volatilities on Branded Legacy and Trident Brands 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 Branded Legacy with a short position of Trident Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Branded Legacy and Trident Brands.

Diversification Opportunities for Branded Legacy and Trident Brands

0.0

Correlation Coefficient

Branded Legacy  Trident Brands

Pay attention - limited upside

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

Pair Corralation between Branded Legacy and Trident Brands

If you would invest  0.09  in Branded Legacy on May 6, 2025 and sell it today you would lose (0.03) from holding Branded Legacy or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Branded Legacy  vs.  Trident Brands

Branded Legacy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Branded Legacy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Branded Legacy reported solid returns over the last few months and may actually be approaching a breakup point.

Trident Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trident Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Trident Brands is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Branded Legacy and Trident Brands

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

The idea behind Branded Legacy and Trident Brands 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.