Correlation Between Tainet Communication and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Tainet Communication and Aker Technology 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 Tainet Communication and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainet Communication System and Aker Technology Co, you can compare the effects of market volatilities on Tainet Communication and Aker Technology 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 Tainet Communication with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainet Communication and Aker Technology.
Diversification Opportunities for Tainet Communication and Aker Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tainet and Aker is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tainet Communication System and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Tainet Communication 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 Tainet Communication System are associated (or correlated) with Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Tainet Communication i.e., Tainet Communication and Aker Technology go up and down completely randomly.
Pair Corralation between Tainet Communication and Aker Technology
Assuming the 90 days trading horizon Tainet Communication System is expected to generate 0.48 times more return on investment than Aker Technology. However, Tainet Communication System is 2.08 times less risky than Aker Technology. It trades about -0.04 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.34 per unit of risk. If you would invest 7,980 in Tainet Communication System on October 16, 2024 and sell it today you would lose (110.00) from holding Tainet Communication System or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tainet Communication System vs. Aker Technology Co
Performance |
| Timeline |
| Tainet Communication |
| Aker Technology |
Tainet Communication and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tainet Communication and Aker Technology
The main advantage of trading using opposite Tainet Communication and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainet Communication position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Tainet Communication vs. Sun Max Tech | Tainet Communication vs. Simplo Technology Co | Tainet Communication vs. Maxigen Biotech | Tainet Communication vs. Taichung Commercial Bank |
| Aker Technology vs. Aerospace Industrial Development | Aker Technology vs. De Licacy Industrial | Aker Technology vs. Wha Yu Industrial | Aker Technology vs. Unique Optical Industrial |
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
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |