Correlation Between Thermaltake Technology and Tex Ray
Can any of the company-specific risk be diversified away by investing in both Thermaltake Technology and Tex Ray 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 Thermaltake Technology and Tex Ray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermaltake Technology Co and Tex Ray Industrial Co, you can compare the effects of market volatilities on Thermaltake Technology and Tex Ray 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 Thermaltake Technology with a short position of Tex Ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermaltake Technology and Tex Ray.
Diversification Opportunities for Thermaltake Technology and Tex Ray
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thermaltake and Tex is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Thermaltake Technology Co and Tex Ray Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Ray Industrial and Thermaltake Technology 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 Thermaltake Technology Co are associated (or correlated) with Tex Ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Ray Industrial has no effect on the direction of Thermaltake Technology i.e., Thermaltake Technology and Tex Ray go up and down completely randomly.
Pair Corralation between Thermaltake Technology and Tex Ray
Assuming the 90 days trading horizon Thermaltake Technology Co is expected to under-perform the Tex Ray. In addition to that, Thermaltake Technology is 1.47 times more volatile than Tex Ray Industrial Co. It trades about -0.01 of its total potential returns per unit of risk. Tex Ray Industrial Co is currently generating about 0.08 per unit of volatility. If you would invest 1,055 in Tex Ray Industrial Co on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Tex Ray Industrial Co or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermaltake Technology Co vs. Tex Ray Industrial Co
Performance |
| Timeline |
| Thermaltake Technology |
| Tex Ray Industrial |
Thermaltake Technology and Tex Ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermaltake Technology and Tex Ray
The main advantage of trading using opposite Thermaltake Technology and Tex Ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermaltake Technology position performs unexpectedly, Tex Ray 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 Tex Ray will offset losses from the drop in Tex Ray's long position.| Thermaltake Technology vs. ASRock Inc | Thermaltake Technology vs. Auras Technology Co | Thermaltake Technology vs. Micro Star International Co | Thermaltake Technology vs. Gigabyte Technology Co |
| Tex Ray vs. Tainan Enterprises Co | Tex Ray vs. De Licacy Industrial | Tex Ray vs. Nien Hsing Textile | Tex Ray vs. Wisher 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |