Correlation Between Text SA and IVU Traffic

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

By analyzing existing cross correlation between Text SA and IVU Traffic Technologies, you can compare the effects of market volatilities on Text SA and IVU Traffic 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 Text SA with a short position of IVU Traffic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Text SA and IVU Traffic.

Diversification Opportunities for Text SA and IVU Traffic

0.0

Correlation Coefficient

Text SA  IVU Traffic

Pay attention - limited upside

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

Pair Corralation between Text SA and IVU Traffic

If you would invest  1,712  in IVU Traffic Technologies on August 14, 2025 and sell it today you would earn a total of  0.00  from holding IVU Traffic Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Text SA  vs.  IVU Traffic Technologies

Text SA

Risk-Adjusted Performance

Weakest

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

IVU Traffic Technologies

Risk-Adjusted Performance

Weakest

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

Pair Trading with Text SA and IVU Traffic

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

The idea behind Text SA and IVU Traffic Technologies 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.