Correlation Between ROHM and TRIP GROUP

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

By analyzing existing cross correlation between ROHM Co and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on ROHM and TRIP GROUP 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 ROHM with a short position of TRIP GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROHM and TRIP GROUP.

Diversification Opportunities for ROHM and TRIP GROUP

-0.49

Correlation Coefficient

ROHM  TRIP GROUP

Very good diversification

The 3 months correlation between ROHM and TRIP is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ROHM Co and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and ROHM 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 ROHM Co are associated (or correlated) with TRIP GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of ROHM i.e., ROHM and TRIP GROUP go up and down completely randomly.

Pair Corralation between ROHM and TRIP GROUP

Assuming the 90 days horizon ROHM Co is expected to under-perform the TRIP GROUP. But the stock apears to be less risky and, when comparing its historical volatility, ROHM Co is 1.56 times less risky than TRIP GROUP. The stock trades about -0.02 of its potential returns per unit of risk. The TRIPCOM GROUP DL 00125 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,343  in TRIPCOM GROUP DL 00125 on May 13, 2025 and sell it today you would earn a total of  1,907  from holding TRIPCOM GROUP DL 00125 or generate 57.04% return on investment over 90 days.

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

ROHM Co  vs.  TRIPCOM GROUP DL 00125

ROHM

Risk-Adjusted Performance

Good

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

TRIPCOM GROUP DL

Risk-Adjusted Performance

Weakest

Over the last 90 days TRIPCOM GROUP DL 00125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TRIP GROUP is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ROHM and TRIP GROUP

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

The idea behind ROHM Co and TRIPCOM GROUP DL 00125 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.