Correlation Between Tecogen and Preformed Line
Can any of the company-specific risk be diversified away by investing in both Tecogen and Preformed Line 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 Tecogen and Preformed Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Preformed Line Products, you can compare the effects of market volatilities on Tecogen and Preformed Line 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 Tecogen with a short position of Preformed Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Preformed Line.
Diversification Opportunities for Tecogen and Preformed Line
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tecogen and Preformed is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and Preformed Line Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Preformed Line Products and Tecogen 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 Tecogen are associated (or correlated) with Preformed Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Preformed Line Products has no effect on the direction of Tecogen i.e., Tecogen and Preformed Line go up and down completely randomly.
Pair Corralation between Tecogen and Preformed Line
Given the investment horizon of 90 days Tecogen is expected to under-perform the Preformed Line. In addition to that, Tecogen is 1.88 times more volatile than Preformed Line Products. It trades about 0.0 of its total potential returns per unit of risk. Preformed Line Products is currently generating about 0.04 per unit of volatility. If you would invest 9,125 in Preformed Line Products on August 28, 2024 and sell it today you would earn a total of 4,640 from holding Preformed Line Products or generate 50.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
Tecogen vs. Preformed Line Products
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Preformed Line Products |
Tecogen and Preformed Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Preformed Line
The main advantage of trading using opposite Tecogen and Preformed Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, Preformed Line 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 Preformed Line will offset losses from the drop in Preformed Line's long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| Preformed Line vs. Kimball Electronics | Preformed Line vs. nVent Electric PLC | Preformed Line vs. Espey Mfg Electronics | Preformed Line vs. Hubbell |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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