Correlation Between Castellum and Taskus

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

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

Diversification Opportunities for Castellum and Taskus

0.58

Correlation Coefficient

Castellum  Taskus

Very weak diversification

The 3 months correlation between Castellum and Taskus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc and Castellum 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 Castellum are associated (or correlated) with Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of Castellum i.e., Castellum and Taskus go up and down completely randomly.

Pair Corralation between Castellum and Taskus

Considering the 90-day investment horizon Castellum is expected to generate 2.28 times more return on investment than Taskus. However, Castellum is 2.28 times more volatile than Taskus Inc. It trades about 0.11 of its potential returns per unit of risk. Taskus Inc is currently generating about 0.13 per unit of risk. If you would invest  99.00  in Castellum on April 29, 2025 and sell it today you would earn a total of  33.00  from holding Castellum or generate 33.33% return on investment over 90 days.

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

Castellum  vs.  Taskus Inc

Castellum

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Castellum are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Castellum displayed solid returns over the last few months and may actually be approaching a breakup point.

Taskus Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Taskus Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Taskus disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Castellum and Taskus

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

The idea behind Castellum and Taskus Inc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.