Correlation Between MKS Instruments and Telkonet
Can any of the company-specific risk be diversified away by investing in both MKS Instruments and Telkonet 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 MKS Instruments and Telkonet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MKS Instruments and Telkonet, you can compare the effects of market volatilities on MKS Instruments and Telkonet 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 MKS Instruments with a short position of Telkonet. Check out your portfolio center. Please also check ongoing floating volatility patterns of MKS Instruments and Telkonet.
Diversification Opportunities for MKS Instruments and Telkonet
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between MKS and Telkonet is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MKS Instruments and Telkonet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telkonet and MKS Instruments 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 MKS Instruments are associated (or correlated) with Telkonet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telkonet has no effect on the direction of MKS Instruments i.e., MKS Instruments and Telkonet go up and down completely randomly.
Pair Corralation between MKS Instruments and Telkonet
If you would invest 1.55 in Telkonet on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Telkonet or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
MKS Instruments vs. Telkonet
Performance |
| Timeline |
| MKS Instruments |
| Telkonet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MKS Instruments and Telkonet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MKS Instruments and Telkonet
The main advantage of trading using opposite MKS Instruments and Telkonet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MKS Instruments position performs unexpectedly, Telkonet 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 Telkonet will offset losses from the drop in Telkonet's long position.| MKS Instruments vs. Vontier Corp | MKS Instruments vs. Teledyne Technologies Incorporated | MKS Instruments vs. ESCO Technologies | MKS Instruments vs. Sensata Technologies Holding |
| Telkonet vs. SaverOne 2014 Ltd | Telkonet vs. MKS Instruments | Telkonet vs. Blacksky Technology | Telkonet vs. Mind Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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