Correlation Between Ion Beam and Teradata Corp

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

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

Diversification Opportunities for Ion Beam and Teradata Corp

-0.6

Correlation Coefficient

Ion Beam  Teradata Corp

Excellent diversification

The 3 months correlation between Ion and Teradata is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Teradata Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradata Corp and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Teradata Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradata Corp has no effect on the direction of Ion Beam i.e., Ion Beam and Teradata Corp go up and down completely randomly.

Pair Corralation between Ion Beam and Teradata Corp

Assuming the 90 days horizon Ion Beam Applications is expected to under-perform the Teradata Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ion Beam Applications is 1.8 times less risky than Teradata Corp. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Teradata Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,126  in Teradata Corp on September 8, 2025 and sell it today you would earn a total of  860.00  from holding Teradata Corp or generate 40.45% return on investment over 90 days.

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

Ion Beam Applications  vs.  Teradata Corp

Ion Beam Applications

Risk-Adjusted Performance

Weakest

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

Teradata Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Teradata Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental indicators, Teradata Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ion Beam and Teradata Corp

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

The idea behind Ion Beam Applications and Teradata Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.