Correlation Between STF Tactical and Alexander Baldwin

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

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

Diversification Opportunities for STF Tactical and Alexander Baldwin

0.5

Correlation Coefficient

STF Tactical  Alexander Baldwin

Very weak diversification

The 3 months correlation between STF and Alexander is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding STF Tactical Growth and Alexander Baldwin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexander Baldwin and STF Tactical 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 STF Tactical Growth are associated (or correlated) with Alexander Baldwin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexander Baldwin has no effect on the direction of STF Tactical i.e., STF Tactical and Alexander Baldwin go up and down completely randomly.

Pair Corralation between STF Tactical and Alexander Baldwin

Considering the 90-day investment horizon STF Tactical Growth is expected to generate 0.78 times more return on investment than Alexander Baldwin. However, STF Tactical Growth is 1.28 times less risky than Alexander Baldwin. It trades about 0.2 of its potential returns per unit of risk. Alexander Baldwin Holdings is currently generating about 0.09 per unit of risk. If you would invest  3,421  in STF Tactical Growth on May 19, 2025 and sell it today you would earn a total of  354.00  from holding STF Tactical Growth or generate 10.35% return on investment over 90 days.

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

STF Tactical Growth  vs.  Alexander Baldwin Holdings

STF Tactical Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in STF Tactical Growth are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, STF Tactical may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Alexander Baldwin

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Alexander Baldwin Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Alexander Baldwin is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with STF Tactical and Alexander Baldwin

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

The idea behind STF Tactical Growth and Alexander Baldwin Holdings 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.