Correlation Between TITANIUM TRANSPORTGROUP and STMicroelectronics

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

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

Diversification Opportunities for TITANIUM TRANSPORTGROUP and STMicroelectronics

0.01

Correlation Coefficient

TITANIUM TRANSPORTGROUP  STMicroelectronics

Significant diversification

The 3 months correlation between TITANIUM and STMicroelectronics is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding TITANIUM TRANSPORTGROUP and STMicroelectronics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMicroelectronics and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP are associated (or correlated) with STMicroelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMicroelectronics has no effect on the direction of TITANIUM TRANSPORTGROUP i.e., TITANIUM TRANSPORTGROUP and STMicroelectronics go up and down completely randomly.

Pair Corralation between TITANIUM TRANSPORTGROUP and STMicroelectronics

Assuming the 90 days horizon TITANIUM TRANSPORTGROUP is expected to generate 1.54 times more return on investment than STMicroelectronics. However, TITANIUM TRANSPORTGROUP is 1.54 times more volatile than STMicroelectronics NV. It trades about -0.02 of its potential returns per unit of risk. STMicroelectronics NV is currently generating about -0.04 per unit of risk. If you would invest  90.00  in TITANIUM TRANSPORTGROUP on August 17, 2025 and sell it today you would lose (9.00) from holding TITANIUM TRANSPORTGROUP or give up 10.0% of portfolio value over 90 days.

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

TITANIUM TRANSPORTGROUP  vs.  STMicroelectronics NV

TITANIUM TRANSPORTGROUP

Risk-Adjusted Performance

Weakest

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

STMicroelectronics

Risk-Adjusted Performance

Weakest

Over the last 90 days STMicroelectronics NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with TITANIUM TRANSPORTGROUP and STMicroelectronics

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

The idea behind TITANIUM TRANSPORTGROUP and STMicroelectronics NV 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.