Correlation Between TKS Technologies and Cal Comp
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Cal Comp 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 Cal Comp 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 Cal Comp Electronics Public, you can compare the effects of market volatilities on TKS Technologies and Cal Comp 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 Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Cal Comp.
Diversification Opportunities for TKS Technologies and Cal Comp
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TKS and Cal is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics 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 Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of TKS Technologies i.e., TKS Technologies and Cal Comp go up and down completely randomly.
Pair Corralation between TKS Technologies and Cal Comp
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 18.35 times more return on investment than Cal Comp. However, TKS Technologies is 18.35 times more volatile than Cal Comp Electronics Public. It trades about 0.08 of its potential returns per unit of risk. Cal Comp Electronics Public is currently generating about 0.15 per unit of risk. If you would invest 768.00 in TKS Technologies Public on September 12, 2024 and sell it today you would lose (133.00) from holding TKS Technologies Public or give up 17.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Cal Comp Electronics Public
Performance |
| Timeline |
| TKS Technologies Public |
| Cal Comp Electronics |
TKS Technologies and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Cal Comp
The main advantage of trading using opposite TKS Technologies and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp's long position.| TKS Technologies vs. Tata Steel Public | TKS Technologies vs. TTCL Public | TKS Technologies vs. Thaifoods Group Public | TKS Technologies vs. TMT Steel Public |
| Cal Comp vs. KCE Electronics Public | Cal Comp vs. Land and Houses | Cal Comp vs. Delta Electronics Public | Cal Comp vs. The Siam Cement |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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