Correlation Between HAZAMA ANDO and Transcontinental

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

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

Diversification Opportunities for HAZAMA ANDO and Transcontinental

0.0

Correlation Coefficient

HAZAMA ANDO  Transcontinental

Pay attention - limited upside

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

Pair Corralation between HAZAMA ANDO and Transcontinental

If you would invest  1,435  in Transcontinental on September 16, 2025 and sell it today you would earn a total of  271.00  from holding Transcontinental or generate 18.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HAZAMA ANDO Corp  vs.  Transcontinental

HAZAMA ANDO Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days HAZAMA ANDO Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HAZAMA ANDO is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Transcontinental

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Transcontinental are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Transcontinental reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HAZAMA ANDO and Transcontinental

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

The idea behind HAZAMA ANDO Corp and Transcontinental 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.