Correlation Between Teka Construction and SC Asset
Can any of the company-specific risk be diversified away by investing in both Teka Construction and SC Asset 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 Teka Construction and SC Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teka Construction PCL and SC Asset, you can compare the effects of market volatilities on Teka Construction and SC Asset 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 Teka Construction with a short position of SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teka Construction and SC Asset.
Diversification Opportunities for Teka Construction and SC Asset
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teka and SC Asset is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Teka Construction PCL and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and Teka Construction 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 Teka Construction PCL are associated (or correlated) with SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Teka Construction i.e., Teka Construction and SC Asset go up and down completely randomly.
Pair Corralation between Teka Construction and SC Asset
Assuming the 90 days trading horizon Teka Construction PCL is expected to under-perform the SC Asset. But the stock apears to be less risky and, when comparing its historical volatility, Teka Construction PCL is 21.55 times less risky than SC Asset. The stock trades about -0.01 of its potential returns per unit of risk. The SC Asset is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 374.00 in SC Asset on September 14, 2024 and sell it today you would lose (92.00) from holding SC Asset or give up 24.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Teka Construction PCL vs. SC Asset
Performance |
| Timeline |
| Teka Construction PCL |
| SC Asset |
Teka Construction and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teka Construction and SC Asset
The main advantage of trading using opposite Teka Construction and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teka Construction position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.| Teka Construction vs. Sabuy Technology Public | Teka Construction vs. Takuni Group Public | Teka Construction vs. SVI Public | Teka Construction vs. The Erawan Group |
| SC Asset vs. Indara Insurance Public | SC Asset vs. Syntec Construction Public | SC Asset vs. WHA Industrial Leasehold | SC Asset vs. Teka Construction PCL |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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