Correlation Between TOMI Environmental and Butler National

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

By analyzing existing cross correlation between TOMI Environmental Solutions and Butler National Corp, you can compare the effects of market volatilities on TOMI Environmental and Butler National 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 TOMI Environmental with a short position of Butler National. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOMI Environmental and Butler National.

Diversification Opportunities for TOMI Environmental and Butler National

0.0

Correlation Coefficient

TOMI Environmental  Butler National

Pay attention - limited upside

The 3 months correlation between TOMI and Butler is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TOMI Environmental Solutions and Butler National Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Butler National Corp and TOMI Environmental 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 TOMI Environmental Solutions are associated (or correlated) with Butler National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Butler National Corp has no effect on the direction of TOMI Environmental i.e., TOMI Environmental and Butler National go up and down completely randomly.

Pair Corralation between TOMI Environmental and Butler National

Given the investment horizon of 90 days TOMI Environmental Solutions is expected to generate 1.6 times more return on investment than Butler National. However, TOMI Environmental is 1.6 times more volatile than Butler National Corp. It trades about 0.09 of its potential returns per unit of risk. Butler National Corp is currently generating about 0.02 per unit of risk. If you would invest  81.00  in TOMI Environmental Solutions on May 6, 2025 and sell it today you would earn a total of  18.00  from holding TOMI Environmental Solutions or generate 22.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

TOMI Environmental Solutions  vs.  Butler National Corp

TOMI Environmental

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TOMI Environmental Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating primary indicators, TOMI Environmental showed solid returns over the last few months and may actually be approaching a breakup point.

Butler National Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Butler National Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking signals, Butler National is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TOMI Environmental and Butler National

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

The idea behind TOMI Environmental Solutions and Butler National Corp 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.

Check out your portfolio center.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.