Correlation Between Toho and CTS Eventim

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

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

Diversification Opportunities for Toho and CTS Eventim

0.62

Correlation Coefficient

Toho  CTS Eventim

Poor diversification

The 3 months correlation between Toho and CTS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Toho Co and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG and Toho 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 Toho Co are associated (or correlated) with CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of Toho i.e., Toho and CTS Eventim go up and down completely randomly.

Pair Corralation between Toho and CTS Eventim

Assuming the 90 days horizon Toho Co is expected to generate 0.65 times more return on investment than CTS Eventim. However, Toho Co is 1.54 times less risky than CTS Eventim. It trades about -0.09 of its potential returns per unit of risk. CTS Eventim AG is currently generating about -0.13 per unit of risk. If you would invest  5,675  in Toho Co on August 19, 2025 and sell it today you would lose (575.00) from holding Toho Co or give up 10.13% of portfolio value over 90 days.

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

Toho Co  vs.  CTS Eventim AG

Toho

Risk-Adjusted Performance

Weakest

Over the last 90 days Toho Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CTS Eventim AG

Risk-Adjusted Performance

Weakest

Over the last 90 days CTS Eventim AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Toho and CTS Eventim

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

The idea behind Toho Co and CTS Eventim AG 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.