Correlation Between TKS Technologies and Thachang Green
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Thachang Green 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 Thachang Green 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 Thachang Green Energy, you can compare the effects of market volatilities on TKS Technologies and Thachang Green 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 Thachang Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Thachang Green.
Diversification Opportunities for TKS Technologies and Thachang Green
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TKS and Thachang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Thachang Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thachang Green Energy 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 Thachang Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thachang Green Energy has no effect on the direction of TKS Technologies i.e., TKS Technologies and Thachang Green go up and down completely randomly.
Pair Corralation between TKS Technologies and Thachang Green
Assuming the 90 days trading horizon TKS Technologies Public is expected to under-perform the Thachang Green. But the stock apears to be less risky and, when comparing its historical volatility, TKS Technologies Public is 1.47 times less risky than Thachang Green. The stock trades about -0.31 of its potential returns per unit of risk. The Thachang Green Energy is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 254.00 in Thachang Green Energy on September 12, 2024 and sell it today you would lose (16.00) from holding Thachang Green Energy or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
TKS Technologies Public vs. Thachang Green Energy
Performance |
| Timeline |
| TKS Technologies Public |
| Thachang Green Energy |
TKS Technologies and Thachang Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Thachang Green
The main advantage of trading using opposite TKS Technologies and Thachang Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Thachang Green 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 Thachang Green will offset losses from the drop in Thachang Green'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 |
| Thachang Green vs. TKS Technologies Public | Thachang Green vs. Thai German Products Public | Thachang Green vs. Eastern Power Group | Thachang Green vs. Susco 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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