Correlation Between SVI Public and TKS Technologies
Can any of the company-specific risk be diversified away by investing in both SVI Public 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 SVI Public and TKS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVI Public and TKS Technologies Public, you can compare the effects of market volatilities on SVI Public 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 SVI Public with a short position of TKS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVI Public and TKS Technologies.
Diversification Opportunities for SVI Public and TKS Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVI and TKS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SVI 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 SVI Public 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 SVI 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 SVI Public i.e., SVI Public and TKS Technologies go up and down completely randomly.
Pair Corralation between SVI Public and TKS Technologies
Assuming the 90 days trading horizon SVI Public is expected to generate 1.0 times more return on investment than TKS Technologies. However, SVI Public is 1.0 times more volatile than TKS Technologies Public. It trades about 0.04 of its potential returns per unit of risk. TKS Technologies Public is currently generating about 0.04 per unit of risk. If you would invest 818.00 in SVI Public on October 24, 2024 and sell it today you would lose (148.00) from holding SVI Public or give up 18.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVI Public vs. TKS Technologies Public
Performance |
| Timeline |
| SVI Public |
| TKS Technologies Public |
SVI Public and TKS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVI Public and TKS Technologies
The main advantage of trading using opposite SVI Public and TKS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVI Public 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.| SVI Public vs. KCE Electronics Public | SVI Public vs. Hana Microelectronics Public | SVI Public vs. Precious Shipping Public | SVI Public vs. Siri Prime Office |
| TKS Technologies vs. Synnex Public | TKS Technologies vs. SiS Distribution Public | TKS Technologies vs. Thoresen Thai Agencies | TKS Technologies vs. SVI Public |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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