Correlation Between O I and TriMas

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

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

Diversification Opportunities for O I and TriMas

0.57

Correlation Coefficient

O I  TriMas

Very weak diversification

The 3 months correlation between O I and TriMas is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding O I Glass and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and O I 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 O I Glass are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of O I i.e., O I and TriMas go up and down completely randomly.

Pair Corralation between O I and TriMas

Allowing for the 90-day total investment horizon O I is expected to generate 239.54 times less return on investment than TriMas. In addition to that, O I is 1.26 times more volatile than TriMas. It trades about 0.0 of its total potential returns per unit of risk. TriMas is currently generating about 0.31 per unit of volatility. If you would invest  2,460  in TriMas on May 3, 2025 and sell it today you would earn a total of  1,113  from holding TriMas or generate 45.24% return on investment over 90 days.

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

O I Glass  vs.  TriMas

O I Glass

Risk-Adjusted Performance

Very Weak

Over the last 90 days O I Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, O I is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

TriMas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with O I and TriMas

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

The idea behind O I Glass and TriMas 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.