Correlation Between Turnkey Communication and Dexon Technology
Can any of the company-specific risk be diversified away by investing in both Turnkey Communication and Dexon Technology 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 Turnkey Communication and Dexon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turnkey Communication Services and Dexon Technology PCL, you can compare the effects of market volatilities on Turnkey Communication and Dexon Technology 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 Turnkey Communication with a short position of Dexon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turnkey Communication and Dexon Technology.
Diversification Opportunities for Turnkey Communication and Dexon Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turnkey and Dexon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services and Dexon Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexon Technology PCL and Turnkey Communication 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 Turnkey Communication Services are associated (or correlated) with Dexon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexon Technology PCL has no effect on the direction of Turnkey Communication i.e., Turnkey Communication and Dexon Technology go up and down completely randomly.
Pair Corralation between Turnkey Communication and Dexon Technology
Assuming the 90 days trading horizon Turnkey Communication Services is expected to generate 0.76 times more return on investment than Dexon Technology. However, Turnkey Communication Services is 1.32 times less risky than Dexon Technology. It trades about 0.11 of its potential returns per unit of risk. Dexon Technology PCL is currently generating about 0.05 per unit of risk. If you would invest 1,100 in Turnkey Communication Services on October 28, 2024 and sell it today you would earn a total of 70.00 from holding Turnkey Communication Services or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turnkey Communication Services vs. Dexon Technology PCL
Performance |
| Timeline |
| Turnkey Communication |
| Dexon Technology PCL |
Turnkey Communication and Dexon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turnkey Communication and Dexon Technology
The main advantage of trading using opposite Turnkey Communication and Dexon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turnkey Communication position performs unexpectedly, Dexon Technology 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 Dexon Technology will offset losses from the drop in Dexon Technology's long position.| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI Public |
| Dexon Technology vs. PTT OIL RETAIL | Dexon Technology vs. Tanachira Retail | Dexon Technology vs. Kasikornbank Public | Dexon Technology vs. TISCO Financial Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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