Correlation Between Mind Technology and Trimble

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

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

Diversification Opportunities for Mind Technology and Trimble

0.85

Correlation Coefficient

Mind Technology  Trimble

Very poor diversification

The 3 months correlation between Mind and Trimble is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology and Trimble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimble and Mind Technology 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 Mind Technology are associated (or correlated) with Trimble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimble has no effect on the direction of Mind Technology i.e., Mind Technology and Trimble go up and down completely randomly.

Pair Corralation between Mind Technology and Trimble

Given the investment horizon of 90 days Mind Technology is expected to under-perform the Trimble. In addition to that, Mind Technology is 1.91 times more volatile than Trimble. It trades about -0.05 of its total potential returns per unit of risk. Trimble is currently generating about 0.0 per unit of volatility. If you would invest  7,366  in Trimble on February 13, 2025 and sell it today you would lose (241.00) from holding Trimble or give up 3.27% of portfolio value over 90 days.

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

Mind Technology  vs.  Trimble

Mind Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mind Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Trimble

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trimble has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Trimble is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mind Technology and Trimble

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

The idea behind Mind Technology and Trimble 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.