Correlation Between TKS Technologies and Dow Jones
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on TKS Technologies and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Dow Jones.
Diversification Opportunities for TKS Technologies and Dow Jones
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between TKS and Dow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of TKS Technologies i.e., TKS Technologies and Dow Jones go up and down completely randomly.
Pair Corralation between TKS Technologies and Dow Jones
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 63.22 times more return on investment than Dow Jones. However, TKS Technologies is 63.22 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,057 in TKS Technologies Public on August 28, 2024 and sell it today you would lose (397.00) from holding TKS Technologies Public or give up 37.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
TKS Technologies Public vs. Dow Jones Industrial
Performance |
| Timeline |
TKS Technologies and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
TKS Technologies Public
Pair trading matchups for TKS Technologies
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with TKS Technologies and Dow Jones
The main advantage of trading using opposite TKS Technologies and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |