Correlation Between Power Of and Tompkins Financial

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

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

Diversification Opportunities for Power Of and Tompkins Financial

0.27

Correlation Coefficient

Power Of  Tompkins Financial

Modest diversification

The 3 months correlation between Power and Tompkins is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Power of and Tompkins Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tompkins Financial and Power Of 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 Power of are associated (or correlated) with Tompkins Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tompkins Financial has no effect on the direction of Power Of i.e., Power Of and Tompkins Financial go up and down completely randomly.

Pair Corralation between Power Of and Tompkins Financial

Assuming the 90 days horizon Power of is expected to generate 0.74 times more return on investment than Tompkins Financial. However, Power of is 1.35 times less risky than Tompkins Financial. It trades about 0.19 of its potential returns per unit of risk. Tompkins Financial is currently generating about 0.0 per unit of risk. If you would invest  3,553  in Power of on May 10, 2025 and sell it today you would earn a total of  611.00  from holding Power of or generate 17.2% return on investment over 90 days.

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

Power of  vs.  Tompkins Financial

Power Of

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Power of are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Power Of reported solid returns over the last few months and may actually be approaching a breakup point.

Tompkins Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Tompkins Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Tompkins Financial is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Power Of and Tompkins Financial

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

The idea behind Power of and Tompkins Financial 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.