Correlation Between Roku and Technos SA
Can any of the company-specific risk be diversified away by investing in both Roku and Technos SA 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 Roku and Technos SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and Technos SA, you can compare the effects of market volatilities on Roku and Technos SA 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 Roku with a short position of Technos SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Technos SA.
Diversification Opportunities for Roku and Technos SA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Roku and Technos is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Technos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technos SA and Roku 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 Roku Inc are associated (or correlated) with Technos SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technos SA has no effect on the direction of Roku i.e., Roku and Technos SA go up and down completely randomly.
Pair Corralation between Roku and Technos SA
Assuming the 90 days trading horizon Roku Inc is expected to under-perform the Technos SA. In addition to that, Roku is 1.42 times more volatile than Technos SA. It trades about -0.08 of its total potential returns per unit of risk. Technos SA is currently generating about -0.08 per unit of volatility. If you would invest 587.00 in Technos SA on August 28, 2024 and sell it today you would lose (36.00) from holding Technos SA or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roku Inc vs. Technos SA
Performance |
| Timeline |
| Roku Inc |
| Technos SA |
Roku and Technos SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and Technos SA
The main advantage of trading using opposite Roku and Technos SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Technos SA 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 Technos SA will offset losses from the drop in Technos SA's long position.The idea behind Roku Inc and Technos SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Technos SA vs. Baidu Inc | Technos SA vs. Deutsche Bank Aktiengesellschaft | Technos SA vs. HSBC Holdings plc | Technos SA vs. The Bank of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |