Correlation Between Titan America and A SPAC

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

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

Diversification Opportunities for Titan America and A SPAC

0.02

Correlation Coefficient

Titan America  A SPAC

Significant diversification

The 3 months correlation between Titan and ASPC is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Titan America SA and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III and Titan America 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 Titan America SA are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Titan America i.e., Titan America and A SPAC go up and down completely randomly.

Pair Corralation between Titan America and A SPAC

Given the investment horizon of 90 days Titan America SA is expected to generate 16.85 times more return on investment than A SPAC. However, Titan America is 16.85 times more volatile than A SPAC III. It trades about 0.05 of its potential returns per unit of risk. A SPAC III is currently generating about 0.13 per unit of risk. If you would invest  1,427  in Titan America SA on May 12, 2025 and sell it today you would earn a total of  73.00  from holding Titan America SA or generate 5.12% return on investment over 90 days.

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

Titan America SA  vs.  A SPAC III

Titan America SA

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Titan America SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Titan America may actually be approaching a critical reversion point that can send shares even higher in September 2025.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Titan America and A SPAC

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

The idea behind Titan America SA and A SPAC III 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.