Correlation Between Turtle Beach and Primoris Services

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

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

Diversification Opportunities for Turtle Beach and Primoris Services

0.19

Correlation Coefficient

Turtle Beach  Primoris Services

Average diversification

The 3 months correlation between Turtle and Primoris is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Turtle Beach and Primoris Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primoris Services and Turtle Beach 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 Turtle Beach are associated (or correlated) with Primoris Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primoris Services has no effect on the direction of Turtle Beach i.e., Turtle Beach and Primoris Services go up and down completely randomly.

Pair Corralation between Turtle Beach and Primoris Services

Given the investment horizon of 90 days Turtle Beach is expected to under-perform the Primoris Services. In addition to that, Turtle Beach is 1.56 times more volatile than Primoris Services. It trades about -0.11 of its total potential returns per unit of risk. Primoris Services is currently generating about 0.03 per unit of volatility. If you would invest  7,164  in Primoris Services on February 28, 2025 and sell it today you would earn a total of  135.00  from holding Primoris Services or generate 1.88% return on investment over 90 days.

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

Turtle Beach  vs.  Primoris Services

Turtle Beach

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turtle Beach has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Primoris Services

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Primoris Services are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Primoris Services is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Turtle Beach and Primoris Services

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

The idea behind Turtle Beach and Primoris Services 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.