Correlation Between Thermaltake Technology and Concord Securities
Can any of the company-specific risk be diversified away by investing in both Thermaltake Technology and Concord Securities 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 Concord Securities 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 Concord Securities Co, you can compare the effects of market volatilities on Thermaltake Technology and Concord Securities 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 Concord Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermaltake Technology and Concord Securities.
Diversification Opportunities for Thermaltake Technology and Concord Securities
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thermaltake and Concord is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thermaltake Technology Co and Concord Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Securities 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 Concord Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Securities has no effect on the direction of Thermaltake Technology i.e., Thermaltake Technology and Concord Securities go up and down completely randomly.
Pair Corralation between Thermaltake Technology and Concord Securities
Assuming the 90 days trading horizon Thermaltake Technology Co is expected to generate 3.88 times more return on investment than Concord Securities. However, Thermaltake Technology is 3.88 times more volatile than Concord Securities Co. It trades about -0.02 of its potential returns per unit of risk. Concord Securities Co is currently generating about -0.15 per unit of risk. If you would invest 3,750 in Thermaltake Technology Co on September 14, 2024 and sell it today you would lose (50.00) from holding Thermaltake Technology Co or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermaltake Technology Co vs. Concord Securities Co
Performance |
| Timeline |
| Thermaltake Technology |
| Concord Securities |
Thermaltake Technology and Concord Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermaltake Technology and Concord Securities
The main advantage of trading using opposite Thermaltake Technology and Concord Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermaltake Technology position performs unexpectedly, Concord Securities 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 Concord Securities will offset losses from the drop in Concord Securities' long position.| Thermaltake Technology vs. Qisda Corp | Thermaltake Technology vs. Quanta Computer | Thermaltake Technology vs. Wistron Corp | Thermaltake Technology vs. Delta Electronics |
| Concord Securities vs. Voltronic Power Technology | Concord Securities vs. Asmedia Technology | Concord Securities vs. Thermaltake Technology Co | Concord Securities vs. Asia Metal Industries |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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