Correlation Between Teka Construction and SCB X
Can any of the company-specific risk be diversified away by investing in both Teka Construction and SCB X 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 SCB X 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 SCB X Public, you can compare the effects of market volatilities on Teka Construction and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teka Construction and SCB X.
Diversification Opportunities for Teka Construction and SCB X
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teka and SCB is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Teka Construction PCL and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of Teka Construction i.e., Teka Construction and SCB X go up and down completely randomly.
Pair Corralation between Teka Construction and SCB X
Assuming the 90 days trading horizon Teka Construction PCL is expected to under-perform the SCB X. In addition to that, Teka Construction is 3.79 times more volatile than SCB X Public. It trades about -0.09 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.28 per unit of volatility. If you would invest 11,400 in SCB X Public on September 12, 2024 and sell it today you would earn a total of 400.00 from holding SCB X Public or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Teka Construction PCL vs. SCB X Public
Performance |
| Timeline |
| Teka Construction PCL |
| SCB X Public |
Teka Construction and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teka Construction and SCB X
The main advantage of trading using opposite Teka Construction and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teka Construction position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X's long position.| Teka Construction vs. TKrungthai Industries Public | Teka Construction vs. TCM Public | Teka Construction vs. Well Graded Engineering | Teka Construction vs. The Steel Public |
| SCB X vs. Information and Communication | SCB X vs. Union Petrochemical Public | SCB X vs. Silicon Craft Technology | SCB X vs. CENTRAL RETAIL P |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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