Correlation Between TKS Technologies and Global Service
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Global Service 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 Global Service 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 Global Service Center, you can compare the effects of market volatilities on TKS Technologies and Global Service 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 Global Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Global Service.
Diversification Opportunities for TKS Technologies and Global Service
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TKS and Global is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Global Service Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Service Center 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 Global Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Service Center has no effect on the direction of TKS Technologies i.e., TKS Technologies and Global Service go up and down completely randomly.
Pair Corralation between TKS Technologies and Global Service
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 0.12 times more return on investment than Global Service. However, TKS Technologies Public is 8.51 times less risky than Global Service. It trades about -0.19 of its potential returns per unit of risk. Global Service Center is currently generating about -0.09 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TKS Technologies Public vs. Global Service Center
Performance |
| Timeline |
| TKS Technologies Public |
| Global Service Center |
TKS Technologies and Global Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Global Service
The main advantage of trading using opposite TKS Technologies and Global Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Global Service 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 Global Service will offset losses from the drop in Global Service'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 |
| Global Service vs. Home Pottery Public | Global Service vs. ARIP Public | Global Service vs. Getabec Public | Global Service vs. Filter Vision 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |