Correlation Between TECO Electric and KMC Kuei
Can any of the company-specific risk be diversified away by investing in both TECO Electric and KMC Kuei 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 KMC Kuei 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 KMC Kuei Meng, you can compare the effects of market volatilities on TECO Electric and KMC Kuei 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 KMC Kuei. Check out your portfolio center. Please also check ongoing floating volatility patterns of TECO Electric and KMC Kuei.
Diversification Opportunities for TECO Electric and KMC Kuei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TECO and KMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TECO Electric Machinery and KMC Kuei Meng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMC Kuei Meng 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 KMC Kuei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMC Kuei Meng has no effect on the direction of TECO Electric i.e., TECO Electric and KMC Kuei go up and down completely randomly.
Pair Corralation between TECO Electric and KMC Kuei
If you would invest 4,695 in TECO Electric Machinery on September 14, 2024 and sell it today you would earn a total of 405.00 from holding TECO Electric Machinery or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TECO Electric Machinery vs. KMC Kuei Meng
Performance |
| Timeline |
| TECO Electric Machinery |
| KMC Kuei Meng |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TECO Electric and KMC Kuei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TECO Electric and KMC Kuei
The main advantage of trading using opposite TECO Electric and KMC Kuei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TECO Electric position performs unexpectedly, KMC Kuei 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 KMC Kuei will offset losses from the drop in KMC Kuei's long position.| TECO Electric vs. Yang Ming Marine | TECO Electric vs. Wan Hai Lines | TECO Electric vs. U Ming Marine Transport | TECO Electric vs. Taiwan Navigation Co |
| KMC Kuei vs. Allied Industrial | KMC Kuei vs. ALFORMER Industrial Co | KMC Kuei vs. Asustek Computer | KMC Kuei vs. Powertech Industrial Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |