Correlation Between TKS Technologies and Thai German
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Thai German 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 Thai German 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 Thai German Products Public, you can compare the effects of market volatilities on TKS Technologies and Thai German 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 Thai German. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Thai German.
Diversification Opportunities for TKS Technologies and Thai German
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TKS and Thai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Thai German Products Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai German Products 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 Thai German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai German Products has no effect on the direction of TKS Technologies i.e., TKS Technologies and Thai German go up and down completely randomly.
Pair Corralation between TKS Technologies and Thai German
Assuming the 90 days trading horizon TKS Technologies Public is expected to under-perform the Thai German. But the stock apears to be less risky and, when comparing its historical volatility, TKS Technologies Public is 6.61 times less risky than Thai German. The stock trades about -0.3 of its potential returns per unit of risk. The Thai German Products Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Thai German Products Public on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Thai German Products Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKS Technologies Public vs. Thai German Products Public
Performance |
| Timeline |
| TKS Technologies Public |
| Thai German Products |
TKS Technologies and Thai German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKS Technologies and Thai German
The main advantage of trading using opposite TKS Technologies and Thai German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Thai German 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 Thai German will offset losses from the drop in Thai German's long position.| TKS Technologies vs. Synnex Public | TKS Technologies vs. SiS Distribution Public | TKS Technologies vs. Thoresen Thai Agencies | TKS Technologies vs. SVI Public |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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