Correlation Between Triumph and Small Pany

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

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

Diversification Opportunities for Triumph and Small Pany

0.61

Correlation Coefficient

Triumph  Small Pany

Poor diversification

The 3 months correlation between Triumph and Small is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Small Pany Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Growth and Triumph 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 Triumph Group are associated (or correlated) with Small Pany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Growth has no effect on the direction of Triumph i.e., Triumph and Small Pany go up and down completely randomly.

Pair Corralation between Triumph and Small Pany

Considering the 90-day investment horizon Triumph Group is expected to generate 87.78 times more return on investment than Small Pany. However, Triumph is 87.78 times more volatile than Small Pany Growth. It trades about 0.13 of its potential returns per unit of risk. Small Pany Growth is currently generating about 0.12 per unit of risk. If you would invest  2,550  in Triumph Group on May 3, 2025 and sell it today you would earn a total of  23,150  from holding Triumph Group or generate 907.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Triumph Group  vs.  Small Pany Growth

Triumph Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Triumph Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Triumph demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Small Pany Growth

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Small Pany Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Small Pany may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Triumph and Small Pany

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

The idea behind Triumph Group and Small Pany Growth 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.