Correlation Between TKS Technologies and Gulf Energy
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Gulf Energy 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 Gulf Energy 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 Gulf Energy Development, you can compare the effects of market volatilities on TKS Technologies and Gulf Energy 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 Gulf Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Gulf Energy.
Diversification Opportunities for TKS Technologies and Gulf Energy
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between TKS and Gulf is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Gulf Energy Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Energy Development 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 Gulf Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Energy Development has no effect on the direction of TKS Technologies i.e., TKS Technologies and Gulf Energy go up and down completely randomly.
Pair Corralation between TKS Technologies and Gulf Energy
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 33.67 times more return on investment than Gulf Energy. However, TKS Technologies is 33.67 times more volatile than Gulf Energy Development. It trades about 0.05 of its potential returns per unit of risk. Gulf Energy Development is currently generating about 0.05 per unit of risk. If you would invest 879.00 in TKS Technologies Public on August 31, 2024 and sell it today you would lose (214.00) from holding TKS Technologies Public or give up 24.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Gulf Energy Development
Performance |
| Timeline |
| TKS Technologies Public |
| Gulf Energy Development |
TKS Technologies and Gulf Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Gulf Energy
The main advantage of trading using opposite TKS Technologies and Gulf Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Gulf Energy 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 Gulf Energy will offset losses from the drop in Gulf Energy's long position.| TKS Technologies vs. Gulf Energy Development | TKS Technologies vs. Energy Absolute Public | TKS Technologies vs. WHA Public | TKS Technologies vs. Bangkok Expressway and |
| Gulf Energy vs. Energy Absolute Public | Gulf Energy vs. BGrimm Power Public | Gulf Energy vs. CP ALL Public | Gulf Energy vs. PTT 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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