Correlation Between Transimex Transportation and Southern Rubber

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

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

Diversification Opportunities for Transimex Transportation and Southern Rubber

-0.12

Correlation Coefficient

Transimex Transportation  Southern Rubber

Good diversification

The 3 months correlation between Transimex and Southern is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and Southern Rubber Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Rubber Industry and Transimex Transportation 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 Transimex Transportation JSC are associated (or correlated) with Southern Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Rubber Industry has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and Southern Rubber go up and down completely randomly.

Pair Corralation between Transimex Transportation and Southern Rubber

Assuming the 90 days trading horizon Transimex Transportation is expected to generate 1.22 times less return on investment than Southern Rubber. But when comparing it to its historical volatility, Transimex Transportation JSC is 1.58 times less risky than Southern Rubber. It trades about 0.12 of its potential returns per unit of risk. Southern Rubber Industry is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,173,818  in Southern Rubber Industry on May 4, 2025 and sell it today you would earn a total of  136,182  from holding Southern Rubber Industry or generate 11.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	81.54%
Values	Daily Returns

Transimex Transportation JSC  vs.  Southern Rubber Industry

Transimex Transportation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Transimex Transportation JSC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Transimex Transportation may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Southern Rubber Industry

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Southern Rubber Industry are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Southern Rubber may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Transimex Transportation and Southern Rubber

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

The idea behind Transimex Transportation JSC and Southern Rubber Industry 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.