Correlation Between TECO Electric and Kinik
Can any of the company-specific risk be diversified away by investing in both TECO Electric and Kinik 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 TECO Electric and Kinik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TECO Electric Machinery and Kinik Co, you can compare the effects of market volatilities on TECO Electric and Kinik 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 TECO Electric with a short position of Kinik. Check out your portfolio center. Please also check ongoing floating volatility patterns of TECO Electric and Kinik.
Diversification Opportunities for TECO Electric and Kinik
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between TECO and Kinik is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding TECO Electric Machinery and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik and TECO Electric 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 TECO Electric Machinery are associated (or correlated) with Kinik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinik has no effect on the direction of TECO Electric i.e., TECO Electric and Kinik go up and down completely randomly.
Pair Corralation between TECO Electric and Kinik
Assuming the 90 days trading horizon TECO Electric is expected to generate 1.59 times less return on investment than Kinik. But when comparing it to its historical volatility, TECO Electric Machinery is 1.26 times less risky than Kinik. It trades about 0.07 of its potential returns per unit of risk. Kinik Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,850 in Kinik Co on August 31, 2024 and sell it today you would earn a total of 18,400 from holding Kinik Co or generate 169.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
TECO Electric Machinery vs. Kinik Co
Performance |
| Timeline |
| TECO Electric Machinery |
| Kinik |
TECO Electric and Kinik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TECO Electric and Kinik
The main advantage of trading using opposite TECO Electric and Kinik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TECO Electric position performs unexpectedly, Kinik 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 Kinik will offset losses from the drop in Kinik's long position.| TECO Electric vs. Walsin Lihwa Corp | TECO Electric vs. Far Eastern New | TECO Electric vs. Nan Ya Plastics | TECO Electric vs. Taiwan Cement Corp |
| Kinik vs. BES Engineering Co | Kinik vs. Continental Holdings Corp | Kinik vs. Kee Tai Properties | Kinik vs. Hung Sheng Construction |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |