Correlation Between Strateco Resources and TGI Solar

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

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

Diversification Opportunities for Strateco Resources and TGI Solar

0.0

Correlation Coefficient

Strateco Resources  TGI Solar

Pay attention - limited upside

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

Pair Corralation between Strateco Resources and TGI Solar

If you would invest  0.13  in TGI Solar Power on August 4, 2025 and sell it today you would earn a total of  0.17  from holding TGI Solar Power or generate 130.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Strateco Resources  vs.  TGI Solar Power

Strateco Resources

Risk-Adjusted Performance

Weakest

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

TGI Solar Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TGI Solar Power are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TGI Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Strateco Resources and TGI Solar

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

The idea behind Strateco Resources and TGI Solar Power 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.