Correlation Between Trio Tech and China Natural

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

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

Diversification Opportunities for Trio Tech and China Natural

-0.49

Correlation Coefficient

Trio Tech  China Natural

Very good diversification

The 3 months correlation between Trio and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Trio Tech International and China Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Natural Resources and Trio Tech 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 Trio Tech International are associated (or correlated) with China Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Natural Resources has no effect on the direction of Trio Tech i.e., Trio Tech and China Natural go up and down completely randomly.

Pair Corralation between Trio Tech and China Natural

Considering the 90-day investment horizon Trio Tech International is expected to generate 0.66 times more return on investment than China Natural. However, Trio Tech International is 1.52 times less risky than China Natural. It trades about 0.27 of its potential returns per unit of risk. China Natural Resources is currently generating about -0.07 per unit of risk. If you would invest  343.00  in Trio Tech International on October 9, 2025 and sell it today you would earn a total of  353.00  from holding Trio Tech International or generate 102.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Trio Tech International  vs.  China Natural Resources

Trio Tech International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Trio Tech International are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Trio Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

China Natural Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days China Natural Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Trio Tech and China Natural

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

The idea behind Trio Tech International and China Natural Resources 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.