Correlation Between Tectonic Metals and Marcus

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

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

Diversification Opportunities for Tectonic Metals and Marcus

-0.22

Correlation Coefficient

Tectonic Metals  Marcus

Very good diversification

The 3 months correlation between Tectonic and Marcus is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tectonic Metals and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Tectonic Metals 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 Tectonic Metals are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Tectonic Metals i.e., Tectonic Metals and Marcus go up and down completely randomly.

Pair Corralation between Tectonic Metals and Marcus

Assuming the 90 days trading horizon Tectonic Metals is expected to generate 2.67 times more return on investment than Marcus. However, Tectonic Metals is 2.67 times more volatile than Marcus. It trades about 0.13 of its potential returns per unit of risk. Marcus is currently generating about -0.09 per unit of risk. If you would invest  65.00  in Tectonic Metals on May 14, 2025 and sell it today you would earn a total of  33.00  from holding Tectonic Metals or generate 50.77% return on investment over 90 days.

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

Tectonic Metals  vs.  Marcus

Tectonic Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tectonic Metals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Tectonic Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Marcus

Risk-Adjusted Performance

Weakest

Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Tectonic Metals and Marcus

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

The idea behind Tectonic Metals and Marcus 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.