Correlation Between TenX Keane and TransAKT
Can any of the company-specific risk be diversified away by investing in both TenX Keane and TransAKT 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 TenX Keane and TransAKT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TenX Keane Acquisition and TransAKT, you can compare the effects of market volatilities on TenX Keane and TransAKT 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 TenX Keane with a short position of TransAKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of TenX Keane and TransAKT.
Diversification Opportunities for TenX Keane and TransAKT
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TenX and TransAKT is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding TenX Keane Acquisition and TransAKT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAKT and TenX Keane 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 TenX Keane Acquisition are associated (or correlated) with TransAKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAKT has no effect on the direction of TenX Keane i.e., TenX Keane and TransAKT go up and down completely randomly.
Pair Corralation between TenX Keane and TransAKT
Given the investment horizon of 90 days TenX Keane is expected to generate 4.94 times less return on investment than TransAKT. But when comparing it to its historical volatility, TenX Keane Acquisition is 3.31 times less risky than TransAKT. It trades about 0.08 of its potential returns per unit of risk. TransAKT is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.22 in TransAKT on August 29, 2024 and sell it today you would earn a total of 2.55 from holding TransAKT or generate 1159.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 41.27% |
| Values | Daily Returns |
TenX Keane Acquisition vs. TransAKT
Performance |
| Timeline |
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TransAKT |
TenX Keane and TransAKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TenX Keane and TransAKT
The main advantage of trading using opposite TenX Keane and TransAKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TenX Keane position performs unexpectedly, TransAKT 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 TransAKT will offset losses from the drop in TransAKT's long position.| TenX Keane vs. Embrace Change Acquisition | TenX Keane vs. Bannix Acquisition Corp | TenX Keane vs. Global Blockchain Acquisition | TenX Keane vs. TransAKT |
| TransAKT vs. Deere Company | TransAKT vs. Columbus McKinnon | TransAKT vs. Hyster Yale Materials Handling | TransAKT vs. Manitowoc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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