Correlation Between Tondo Smart and CompuLab

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

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

Diversification Opportunities for Tondo Smart and CompuLab

-0.2

Correlation Coefficient

Tondo Smart  CompuLab

Good diversification

The 3 months correlation between Tondo and CompuLab is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tondo Smart and CompuLab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuLab and Tondo Smart 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 Tondo Smart are associated (or correlated) with CompuLab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuLab has no effect on the direction of Tondo Smart i.e., Tondo Smart and CompuLab go up and down completely randomly.

Pair Corralation between Tondo Smart and CompuLab

Assuming the 90 days trading horizon Tondo Smart is expected to under-perform the CompuLab. In addition to that, Tondo Smart is 1.0 times more volatile than CompuLab. It trades about -0.14 of its total potential returns per unit of risk. CompuLab is currently generating about 0.01 per unit of volatility. If you would invest  101,900  in CompuLab on August 28, 2025 and sell it today you would lose (500.00) from holding CompuLab or give up 0.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.0%
Values	Daily Returns

Tondo Smart  vs.  CompuLab

Tondo Smart

Risk-Adjusted Performance

Weakest

Over the last 90 days Tondo Smart has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CompuLab

Risk-Adjusted Performance

Weakest

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

Pair Trading with Tondo Smart and CompuLab

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

The idea behind Tondo Smart and CompuLab 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.