Correlation Between Tech Central and TransAct Technologies

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

By analyzing existing cross correlation between Tech Central and TransAct Technologies Incorporated, you can compare the effects of market volatilities on Tech Central and TransAct Technologies 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 Tech Central with a short position of TransAct Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tech Central and TransAct Technologies.

Diversification Opportunities for Tech Central and TransAct Technologies

0.0

Correlation Coefficient

Tech Central  TransAct Technologies

Pay attention - limited upside

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

Pair Corralation between Tech Central and TransAct Technologies

If you would invest  350.00  in TransAct Technologies Incorporated on April 23, 2025 and sell it today you would earn a total of  30.00  from holding TransAct Technologies Incorporated or generate 8.57% return on investment over 90 days.

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

Tech Central  vs.  TransAct Technologies Incorpor

Tech Central

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tech Central has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Tech Central is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

TransAct Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TransAct Technologies Incorporated are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, TransAct Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tech Central and TransAct Technologies

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

The idea behind Tech Central and TransAct Technologies Incorporated 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.