Correlation Between TKS Technologies and Matching Maximize
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Matching Maximize 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 Matching Maximize 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 Matching Maximize Solution, you can compare the effects of market volatilities on TKS Technologies and Matching Maximize 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 Matching Maximize. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Matching Maximize.
Diversification Opportunities for TKS Technologies and Matching Maximize
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TKS and Matching is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Matching Maximize Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matching Maximize 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 Matching Maximize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matching Maximize has no effect on the direction of TKS Technologies i.e., TKS Technologies and Matching Maximize go up and down completely randomly.
Pair Corralation between TKS Technologies and Matching Maximize
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 0.21 times more return on investment than Matching Maximize. However, TKS Technologies Public is 4.73 times less risky than Matching Maximize. It trades about -0.37 of its potential returns per unit of risk. Matching Maximize Solution is currently generating about -0.15 per unit of risk. If you would invest 715.00 in TKS Technologies Public on September 3, 2024 and sell it today you would lose (50.00) from holding TKS Technologies Public or give up 6.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Matching Maximize Solution
Performance |
| Timeline |
| TKS Technologies Public |
| Matching Maximize |
TKS Technologies and Matching Maximize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Matching Maximize
The main advantage of trading using opposite TKS Technologies and Matching Maximize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Matching Maximize 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 Matching Maximize will offset losses from the drop in Matching Maximize's long position.| TKS Technologies vs. Asia Aviation Public | TKS Technologies vs. Bangkok Dusit Medical | TKS Technologies vs. Bangkok Expressway and | TKS Technologies vs. Airports of Thailand |
| Matching Maximize vs. MCOT Public | Matching Maximize vs. Major Cineplex Group | Matching Maximize vs. Matichon 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 Stocks Directory module to find actively traded stocks across global markets.
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