Correlation Between TKS Technologies and Asian Sea
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Asian Sea 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 Asian Sea 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 Asian Sea, you can compare the effects of market volatilities on TKS Technologies and Asian Sea 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 Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Asian Sea.
Diversification Opportunities for TKS Technologies and Asian Sea
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TKS and Asian is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea 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 Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of TKS Technologies i.e., TKS Technologies and Asian Sea go up and down completely randomly.
Pair Corralation between TKS Technologies and Asian Sea
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 0.84 times more return on investment than Asian Sea. However, TKS Technologies Public is 1.19 times less risky than Asian Sea. It trades about -0.3 of its potential returns per unit of risk. Asian Sea is currently generating about -0.25 per unit of risk. If you would invest 705.00 in TKS Technologies Public on August 27, 2024 and sell it today you would lose (45.00) from holding TKS Technologies Public or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Asian Sea
Performance |
| Timeline |
| TKS Technologies Public |
| Asian Sea |
TKS Technologies and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Asian Sea
The main advantage of trading using opposite TKS Technologies and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Asian Sea 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 Asian Sea will offset losses from the drop in Asian Sea'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 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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