Correlation Between Holmes Place and Terminal X

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

By analyzing existing cross correlation between Holmes Place International and Terminal X Online, you can compare the effects of market volatilities on Holmes Place and Terminal X 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 Holmes Place with a short position of Terminal X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Terminal X.

Diversification Opportunities for Holmes Place and Terminal X

-0.23

Correlation Coefficient

Holmes Place  Terminal X

Very good diversification

The 3 months correlation between Holmes and Terminal is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Terminal X Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terminal X Online and Holmes Place 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 Holmes Place International are associated (or correlated) with Terminal X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terminal X Online has no effect on the direction of Holmes Place i.e., Holmes Place and Terminal X go up and down completely randomly.

Pair Corralation between Holmes Place and Terminal X

Assuming the 90 days trading horizon Holmes Place is expected to generate 4.49 times less return on investment than Terminal X. But when comparing it to its historical volatility, Holmes Place International is 1.18 times less risky than Terminal X. It trades about 0.05 of its potential returns per unit of risk. Terminal X Online is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  45,430  in Terminal X Online on April 30, 2025 and sell it today you would earn a total of  6,370  from holding Terminal X Online or generate 14.02% return on investment over 90 days.

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

Holmes Place International  vs.  Terminal X Online

Holmes Place Interna

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Holmes Place International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Holmes Place is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Terminal X Online

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Terminal X Online are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Terminal X sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Holmes Place and Terminal X

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

The idea behind Holmes Place International and Terminal X Online 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.