Correlation Between TKS Technologies and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Autocorp Holding 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 TKS Technologies and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TKS Technologies Public and Autocorp Holding Public, you can compare the effects of market volatilities on TKS Technologies and Autocorp Holding 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 TKS Technologies with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Autocorp Holding.
Diversification Opportunities for TKS Technologies and Autocorp Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TKS and Autocorp is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and TKS Technologies 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 TKS Technologies Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of TKS Technologies i.e., TKS Technologies and Autocorp Holding go up and down completely randomly.
Pair Corralation between TKS Technologies and Autocorp Holding
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 0.58 times more return on investment than Autocorp Holding. However, TKS Technologies Public is 1.71 times less risky than Autocorp Holding. It trades about -0.19 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about -0.28 per unit of risk. If you would invest 700.00 in TKS Technologies Public on August 24, 2024 and sell it today you would lose (30.00) from holding TKS Technologies Public or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Autocorp Holding Public
Performance |
| Timeline |
| TKS Technologies Public |
| Autocorp Holding Public |
TKS Technologies and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Autocorp Holding
The main advantage of trading using opposite TKS Technologies and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| TKS Technologies vs. Tata Steel Public | TKS Technologies vs. Thaifoods Group Public | TKS Technologies vs. TMT Steel Public | TKS Technologies vs. The Erawan Group |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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