Correlation Between TCM Public and Hydrotek Public
Can any of the company-specific risk be diversified away by investing in both TCM Public and Hydrotek Public 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 TCM Public and Hydrotek Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TCM Public and Hydrotek Public, you can compare the effects of market volatilities on TCM Public and Hydrotek Public 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 TCM Public with a short position of Hydrotek Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCM Public and Hydrotek Public.
Diversification Opportunities for TCM Public and Hydrotek Public
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TCM and Hydrotek is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TCM Public and Hydrotek Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrotek Public and TCM 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 TCM Public are associated (or correlated) with Hydrotek Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrotek Public has no effect on the direction of TCM Public i.e., TCM Public and Hydrotek Public go up and down completely randomly.
Pair Corralation between TCM Public and Hydrotek Public
Assuming the 90 days trading horizon TCM Public is expected to generate 0.22 times more return on investment than Hydrotek Public. However, TCM Public is 4.54 times less risky than Hydrotek Public. It trades about -0.23 of its potential returns per unit of risk. Hydrotek Public is currently generating about -0.09 per unit of risk. If you would invest 86.00 in TCM Public on August 29, 2024 and sell it today you would lose (12.00) from holding TCM Public or give up 13.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TCM Public vs. Hydrotek Public
Performance |
| Timeline |
| TCM Public |
| Hydrotek Public |
TCM Public and Hydrotek Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TCM Public and Hydrotek Public
The main advantage of trading using opposite TCM Public and Hydrotek Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCM Public position performs unexpectedly, Hydrotek Public 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 Hydrotek Public will offset losses from the drop in Hydrotek Public's long position.| TCM Public vs. SCB X Public | TCM Public vs. Kasikornbank Public | TCM Public vs. PTT Public | TCM Public vs. Kasikornbank Public |
| Hydrotek Public vs. Internet Thailand Public | Hydrotek Public vs. Cho Thavee Public | Hydrotek Public vs. E for L | Hydrotek Public vs. Grande Asset Hotels |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |