Correlation Between Ekarat Engineering and TPI Polene
Can any of the company-specific risk be diversified away by investing in both Ekarat Engineering and TPI Polene 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 Ekarat Engineering and TPI Polene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekarat Engineering Public and TPI Polene Power, you can compare the effects of market volatilities on Ekarat Engineering and TPI Polene 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 Ekarat Engineering with a short position of TPI Polene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekarat Engineering and TPI Polene.
Diversification Opportunities for Ekarat Engineering and TPI Polene
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekarat and TPI is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ekarat Engineering Public and TPI Polene Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPI Polene Power and Ekarat Engineering 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 Ekarat Engineering Public are associated (or correlated) with TPI Polene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPI Polene Power has no effect on the direction of Ekarat Engineering i.e., Ekarat Engineering and TPI Polene go up and down completely randomly.
Pair Corralation between Ekarat Engineering and TPI Polene
Assuming the 90 days trading horizon Ekarat Engineering Public is expected to under-perform the TPI Polene. In addition to that, Ekarat Engineering is 2.93 times more volatile than TPI Polene Power. It trades about -0.05 of its total potential returns per unit of risk. TPI Polene Power is currently generating about 0.06 per unit of volatility. If you would invest 296.00 in TPI Polene Power on November 2, 2024 and sell it today you would earn a total of 2.00 from holding TPI Polene Power or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ekarat Engineering Public vs. TPI Polene Power
Performance |
| Timeline |
| Ekarat Engineering Public |
| TPI Polene Power |
Ekarat Engineering and TPI Polene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekarat Engineering and TPI Polene
The main advantage of trading using opposite Ekarat Engineering and TPI Polene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekarat Engineering position performs unexpectedly, TPI Polene 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 TPI Polene will offset losses from the drop in TPI Polene's long position.| Ekarat Engineering vs. Central Retail | Ekarat Engineering vs. CPN Retail Growth | Ekarat Engineering vs. DOHOME | Ekarat Engineering vs. SE Education Public |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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