Correlation Between Texas Instruments and Utz Brands

Can any of the company-specific risk be diversified away by investing in both Texas Instruments and Utz Brands 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 Texas Instruments and Utz Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Texas Instruments Incorporated and Utz Brands, you can compare the effects of market volatilities on Texas Instruments and Utz Brands 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 Texas Instruments with a short position of Utz Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texas Instruments and Utz Brands.

Diversification Opportunities for Texas Instruments and Utz Brands

0.35

Correlation Coefficient

Texas Instruments  Utz Brands

Weak diversification

The 3 months correlation between Texas and Utz is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Texas Instruments Incorporated and Utz Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utz Brands and Texas Instruments 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 Texas Instruments Incorporated are associated (or correlated) with Utz Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utz Brands has no effect on the direction of Texas Instruments i.e., Texas Instruments and Utz Brands go up and down completely randomly.

Pair Corralation between Texas Instruments and Utz Brands

Considering the 90-day investment horizon Texas Instruments is expected to generate 1.11 times less return on investment than Utz Brands. In addition to that, Texas Instruments is 1.22 times more volatile than Utz Brands. It trades about 0.08 of its total potential returns per unit of risk. Utz Brands is currently generating about 0.11 per unit of volatility. If you would invest  1,205  in Utz Brands on May 7, 2025 and sell it today you would earn a total of  170.00  from holding Utz Brands or generate 14.11% return on investment over 90 days.

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

Texas Instruments Incorporated  vs.  Utz Brands

Texas Instruments

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Texas Instruments Incorporated are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Texas Instruments displayed solid returns over the last few months and may actually be approaching a breakup point.

Utz Brands

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Utz Brands are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Utz Brands showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Texas Instruments and Utz Brands

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

The idea behind Texas Instruments Incorporated and Utz Brands 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.