Correlation Between TOPC and Caldera

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

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

Diversification Opportunities for TOPC and Caldera

0.0

Correlation Coefficient

TOPC  Caldera

Pay attention - limited upside

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

Pair Corralation between TOPC and Caldera

If you would invest  0.00  in Caldera on June 4, 2025 and sell it today you would earn a total of  70.00  from holding Caldera or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TOPC  vs.  Caldera

TOPC

Risk-Adjusted Performance

Weakest

Over the last 90 days TOPC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, TOPC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Caldera

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Caldera are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Caldera exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TOPC and Caldera

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

The idea behind TOPC and Caldera 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.