Correlation Between TTM Technologies and BELLUS Health

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Can any of the company-specific risk be diversified away by investing in both TTM Technologies and BELLUS Health 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 TTM Technologies and BELLUS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTM Technologies and BELLUS Health, you can compare the effects of market volatilities on TTM Technologies and BELLUS Health 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 TTM Technologies with a short position of BELLUS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTM Technologies and BELLUS Health.

Diversification Opportunities for TTM Technologies and BELLUS Health

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between TTM Technologies and BELLUS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TTM Technologies and BELLUS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BELLUS Health and TTM Technologies 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 TTM Technologies are associated (or correlated) with BELLUS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BELLUS Health has no effect on the direction of TTM Technologies i.e., TTM Technologies and BELLUS Health go up and down completely randomly.

Pair Corralation between TTM Technologies and BELLUS Health

Given the investment horizon of 90 days TTM Technologies is expected to generate 1.15 times more return on investment than BELLUS Health. However, TTM Technologies is 1.15 times more volatile than BELLUS Health. It trades about 0.35 of its potential returns per unit of risk. BELLUS Health is currently generating about 0.22 per unit of risk. If you would invest  1,273  in TTM Technologies on September 4, 2022 and sell it today you would earn a total of  329.00  from holding TTM Technologies or generate 25.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

TTM Technologies  vs.  BELLUS Health

 Performance (%) 
       Timeline  
TTM Technologies 
TTM Technologies Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TTM Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, TTM Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2023.

TTM Technologies Price Channel

BELLUS Health 
BELLUS Performance
0 of 100
Over the last 90 days BELLUS Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

BELLUS Price Channel

TTM Technologies and BELLUS Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TTM Technologies and BELLUS Health

The main advantage of trading using opposite TTM Technologies and BELLUS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTM Technologies position performs unexpectedly, BELLUS Health 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 BELLUS Health will offset losses from the drop in BELLUS Health's long position.
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The idea behind TTM Technologies and BELLUS Health 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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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 Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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