Correlation Between TGI Infrastructures and Mia Dynamics

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

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

Diversification Opportunities for TGI Infrastructures and Mia Dynamics

-0.69

Correlation Coefficient

TGI Infrastructures  Mia Dynamics

Excellent diversification

The 3 months correlation between TGI and Mia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding TGI Infrastructures and Mia Dynamics Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mia Dynamics Motors and TGI Infrastructures 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 TGI Infrastructures are associated (or correlated) with Mia Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mia Dynamics Motors has no effect on the direction of TGI Infrastructures i.e., TGI Infrastructures and Mia Dynamics go up and down completely randomly.

Pair Corralation between TGI Infrastructures and Mia Dynamics

Assuming the 90 days trading horizon TGI Infrastructures is expected to under-perform the Mia Dynamics. But the stock apears to be less risky and, when comparing its historical volatility, TGI Infrastructures is 3.33 times less risky than Mia Dynamics. The stock trades about -0.05 of its potential returns per unit of risk. The Mia Dynamics Motors is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  5,070  in Mia Dynamics Motors on October 7, 2025 and sell it today you would earn a total of  3,850  from holding Mia Dynamics Motors or generate 75.94% return on investment over 90 days.

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

TGI Infrastructures  vs.  Mia Dynamics Motors

TGI Infrastructures

Risk-Adjusted Performance

Weakest

Over the last 90 days TGI Infrastructures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, TGI Infrastructures is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mia Dynamics Motors

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mia Dynamics Motors are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mia Dynamics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TGI Infrastructures and Mia Dynamics

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

The idea behind TGI Infrastructures and Mia Dynamics Motors 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.