Correlation Between TransAKT and Sack Lunch

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

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

Diversification Opportunities for TransAKT and Sack Lunch

0.16

Correlation Coefficient

TransAKT  Sack Lunch

Average diversification

The 3 months correlation between TransAKT and Sack is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TransAKT and Sack Lunch Productions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sack Lunch Productions and TransAKT 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 TransAKT are associated (or correlated) with Sack Lunch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sack Lunch Productions has no effect on the direction of TransAKT i.e., TransAKT and Sack Lunch go up and down completely randomly.

Pair Corralation between TransAKT and Sack Lunch

Given the investment horizon of 90 days TransAKT is expected to generate 2.95 times less return on investment than Sack Lunch. But when comparing it to its historical volatility, TransAKT is 1.69 times less risky than Sack Lunch. It trades about 0.06 of its potential returns per unit of risk. Sack Lunch Productions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Sack Lunch Productions on May 6, 2025 and sell it today you would earn a total of  0.50  from holding Sack Lunch Productions or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

TransAKT  vs.  Sack Lunch Productions

TransAKT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TransAKT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, TransAKT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Sack Lunch Productions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sack Lunch Productions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Sack Lunch disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TransAKT and Sack Lunch

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

The idea behind TransAKT and Sack Lunch Productions 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.