Correlation Between SiS Distribution and TKS Technologies
Can any of the company-specific risk be diversified away by investing in both SiS Distribution 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 SiS Distribution and TKS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiS Distribution Public and TKS Technologies Public, you can compare the effects of market volatilities on SiS Distribution 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 SiS Distribution with a short position of TKS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiS Distribution and TKS Technologies.
Diversification Opportunities for SiS Distribution and TKS Technologies
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SiS and TKS is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SiS Distribution 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 SiS Distribution 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 SiS Distribution 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 SiS Distribution i.e., SiS Distribution and TKS Technologies go up and down completely randomly.
Pair Corralation between SiS Distribution and TKS Technologies
Assuming the 90 days trading horizon SiS Distribution Public is expected to generate 2.55 times more return on investment than TKS Technologies. However, SiS Distribution is 2.55 times more volatile than TKS Technologies Public. It trades about -0.08 of its potential returns per unit of risk. TKS Technologies Public is currently generating about -0.37 per unit of risk. If you would invest 2,750 in SiS Distribution Public on November 4, 2024 and sell it today you would lose (150.00) from holding SiS Distribution Public or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiS Distribution Public vs. TKS Technologies Public
Performance |
| Timeline |
| SiS Distribution Public |
| TKS Technologies Public |
SiS Distribution and TKS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiS Distribution and TKS Technologies
The main advantage of trading using opposite SiS Distribution and TKS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiS Distribution 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.| SiS Distribution vs. Hana Microelectronics Public | SiS Distribution vs. KCE Electronics Public | SiS Distribution vs. Dynasty Ceramic Public | SiS Distribution vs. Delta Electronics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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