Correlation Between Ratchthani Leasing and TKS Technologies
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and TKS Technologies 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 Ratchthani Leasing and TKS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratchthani Leasing Public and TKS Technologies Public, you can compare the effects of market volatilities on Ratchthani Leasing and TKS Technologies 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 Ratchthani Leasing with a short position of TKS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and TKS Technologies.
Diversification Opportunities for Ratchthani Leasing and TKS Technologies
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ratchthani and TKS is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and TKS Technologies Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKS Technologies Public and Ratchthani Leasing 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 Ratchthani Leasing Public are associated (or correlated) with TKS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKS Technologies Public has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and TKS Technologies go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and TKS Technologies
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the TKS Technologies. In addition to that, Ratchthani Leasing is 2.87 times more volatile than TKS Technologies Public. It trades about -0.23 of its total potential returns per unit of risk. TKS Technologies Public is currently generating about -0.22 per unit of volatility. If you would invest 700.00 in TKS Technologies Public on August 26, 2024 and sell it today you would lose (35.00) from holding TKS Technologies Public or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. TKS Technologies Public
Performance |
| Timeline |
| Ratchthani Leasing Public |
| TKS Technologies Public |
Ratchthani Leasing and TKS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and TKS Technologies
The main advantage of trading using opposite Ratchthani Leasing and TKS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, TKS Technologies 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 TKS Technologies will offset losses from the drop in TKS Technologies' long position.| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
| TKS Technologies vs. Synnex Public | TKS Technologies vs. SiS Distribution Public | TKS Technologies vs. Thoresen Thai Agencies | TKS Technologies vs. SVI Public |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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