Correlation Between Founder Group and Tutor Perini

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

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

Diversification Opportunities for Founder Group and Tutor Perini

-0.89

Correlation Coefficient

Founder Group  Tutor Perini

Pay attention - limited upside

The 3 months correlation between Founder and Tutor is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Founder Group Limited and Tutor Perini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tutor Perini and Founder Group 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 Founder Group Limited are associated (or correlated) with Tutor Perini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tutor Perini has no effect on the direction of Founder Group i.e., Founder Group and Tutor Perini go up and down completely randomly.

Pair Corralation between Founder Group and Tutor Perini

Considering the 90-day investment horizon Founder Group is expected to generate 1.04 times less return on investment than Tutor Perini. In addition to that, Founder Group is 3.5 times more volatile than Tutor Perini. It trades about 0.16 of its total potential returns per unit of risk. Tutor Perini is currently generating about 0.59 per unit of volatility. If you would invest  4,189  in Tutor Perini on April 18, 2025 and sell it today you would earn a total of  888.00  from holding Tutor Perini or generate 21.2% return on investment over 90 days.

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

Founder Group Limited  vs.  Tutor Perini

Founder Group Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Tutor Perini

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Tutor Perini are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Tutor Perini exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Founder Group and Tutor Perini

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

The idea behind Founder Group Limited and Tutor Perini 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.