Correlation Between Triple Flag and Applied Materials,

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

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

Diversification Opportunities for Triple Flag and Applied Materials,

-0.27

Correlation Coefficient

Triple Flag  Applied Materials,

Very good diversification

The 3 months correlation between Triple and Applied is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Applied Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials, and Triple Flag 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 Triple Flag Precious are associated (or correlated) with Applied Materials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials, has no effect on the direction of Triple Flag i.e., Triple Flag and Applied Materials, go up and down completely randomly.

Pair Corralation between Triple Flag and Applied Materials,

Assuming the 90 days trading horizon Triple Flag Precious is expected to generate 0.75 times more return on investment than Applied Materials,. However, Triple Flag Precious is 1.33 times less risky than Applied Materials,. It trades about 0.2 of its potential returns per unit of risk. Applied Materials, is currently generating about 0.09 per unit of risk. If you would invest  3,256  in Triple Flag Precious on July 3, 2025 and sell it today you would earn a total of  927.00  from holding Triple Flag Precious or generate 28.47% return on investment over 90 days.

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

Triple Flag Precious  vs.  Applied Materials,

Triple Flag Precious

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Triple Flag Precious are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Triple Flag displayed solid returns over the last few months and may actually be approaching a breakup point.

Applied Materials,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Applied Materials, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triple Flag and Applied Materials,

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

The idea behind Triple Flag Precious and Applied Materials, 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 CEOs Directory module to screen CEOs from public companies around the world.