Correlation Between Chagee Holdings and TriMas

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

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

Diversification Opportunities for Chagee Holdings and TriMas

-0.8

Correlation Coefficient

Chagee Holdings  TriMas

Pay attention - limited upside

The 3 months correlation between Chagee and TriMas is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chagee Holdings Limited and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and Chagee Holdings 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 Chagee Holdings Limited are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of Chagee Holdings i.e., Chagee Holdings and TriMas go up and down completely randomly.

Pair Corralation between Chagee Holdings and TriMas

Considering the 90-day investment horizon Chagee Holdings Limited is expected to under-perform the TriMas. In addition to that, Chagee Holdings is 2.13 times more volatile than TriMas. It trades about -0.13 of its total potential returns per unit of risk. TriMas is currently generating about 0.31 per unit of volatility. If you would invest  2,416  in TriMas on May 1, 2025 and sell it today you would earn a total of  1,071  from holding TriMas or generate 44.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Chagee Holdings Limited  vs.  TriMas

Chagee Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chagee Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TriMas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chagee Holdings and TriMas

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

The idea behind Chagee Holdings Limited and TriMas 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.