Correlation Between TPT Global and Foothills Exploration

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

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

Diversification Opportunities for TPT Global and Foothills Exploration

0.0

Correlation Coefficient

TPT Global  Foothills Exploration

Pay attention - limited upside

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

Pair Corralation between TPT Global and Foothills Exploration

Given the investment horizon of 90 days TPT Global Tech is expected to generate 29.93 times more return on investment than Foothills Exploration. However, TPT Global is 29.93 times more volatile than Foothills Exploration. It trades about 0.38 of its potential returns per unit of risk. Foothills Exploration is currently generating about -0.13 per unit of risk. If you would invest  0.01  in TPT Global Tech on May 3, 2025 and sell it today you would lose (0.01) from holding TPT Global Tech or give up 100.0% of portfolio value over 90 days.

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

TPT Global Tech  vs.  Foothills Exploration

TPT Global Tech

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in TPT Global Tech are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, TPT Global showed solid returns over the last few months and may actually be approaching a breakup point.

Foothills Exploration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Foothills Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with TPT Global and Foothills Exploration

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

The idea behind TPT Global Tech and Foothills Exploration 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.