Correlation Between Cal Comp and TKS Technologies
Can any of the company-specific risk be diversified away by investing in both Cal Comp and TKS Technologies 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 Cal Comp and TKS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Comp Electronics Public and TKS Technologies Public, you can compare the effects of market volatilities on Cal Comp and TKS Technologies 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 Cal Comp with a short position of TKS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Comp and TKS Technologies.
Diversification Opportunities for Cal Comp and TKS Technologies
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cal and TKS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cal Comp Electronics Public and TKS Technologies Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKS Technologies Public and Cal Comp 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 Cal Comp Electronics Public are associated (or correlated) with TKS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKS Technologies Public has no effect on the direction of Cal Comp i.e., Cal Comp and TKS Technologies go up and down completely randomly.
Pair Corralation between Cal Comp and TKS Technologies
Assuming the 90 days trading horizon Cal Comp Electronics Public is expected to generate 8.98 times more return on investment than TKS Technologies. However, Cal Comp is 8.98 times more volatile than TKS Technologies Public. It trades about 0.3 of its potential returns per unit of risk. TKS Technologies Public is currently generating about -0.42 per unit of risk. If you would invest 530.00 in Cal Comp Electronics Public on September 4, 2024 and sell it today you would earn a total of 330.00 from holding Cal Comp Electronics Public or generate 62.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Comp Electronics Public vs. TKS Technologies Public
Performance |
| Timeline |
| Cal Comp Electronics |
| TKS Technologies Public |
Cal Comp and TKS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Comp and TKS Technologies
The main advantage of trading using opposite Cal Comp and TKS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Comp position performs unexpectedly, TKS Technologies 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 TKS Technologies will offset losses from the drop in TKS Technologies' long position.| Cal Comp vs. KCE Electronics Public | Cal Comp vs. Land and Houses | Cal Comp vs. The Siam Cement | Cal Comp vs. Bangkok Bank Public |
| TKS Technologies vs. Asia Aviation Public | TKS Technologies vs. Bangkok Dusit Medical | TKS Technologies vs. Bangkok Expressway and | TKS Technologies vs. Airports of Thailand |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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