Correlation Between TKB Critical and Oak Woods
Can any of the company-specific risk be diversified away by investing in both TKB Critical and Oak Woods 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 TKB Critical and Oak Woods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TKB Critical Technologies and Oak Woods Acquisition, you can compare the effects of market volatilities on TKB Critical and Oak Woods 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 TKB Critical with a short position of Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKB Critical and Oak Woods.
Diversification Opportunities for TKB Critical and Oak Woods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TKB and Oak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TKB Critical Technologies and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition and TKB Critical 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 TKB Critical Technologies are associated (or correlated) with Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of TKB Critical i.e., TKB Critical and Oak Woods go up and down completely randomly.
Pair Corralation between TKB Critical and Oak Woods
If you would invest 1,138 in Oak Woods Acquisition on October 26, 2024 and sell it today you would earn a total of 6.00 from holding Oak Woods Acquisition or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
TKB Critical Technologies vs. Oak Woods Acquisition
Performance |
| Timeline |
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oak Woods Acquisition |
TKB Critical and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKB Critical and Oak Woods
The main advantage of trading using opposite TKB Critical and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKB Critical position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.The idea behind TKB Critical Technologies and Oak Woods Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Oak Woods vs. KLA Tencor | Oak Woods vs. MACOM Technology Solutions | Oak Woods vs. MagnaChip Semiconductor | Oak Woods vs. Nordic Semiconductor ASA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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