Correlation Between Symbotic and TKB Critical

Can any of the company-specific risk be diversified away by investing in both Symbotic and TKB Critical 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 Symbotic and TKB Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Symbotic and TKB Critical Technologies, you can compare the effects of market volatilities on Symbotic and TKB Critical 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 Symbotic with a short position of TKB Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symbotic and TKB Critical.

Diversification Opportunities for Symbotic and TKB Critical

-0.38

Correlation Coefficient

Symbotic  TKB Critical

Very good diversification

The 3 months correlation between Symbotic and TKB is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Symbotic and TKB Critical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKB Critical Technologies and Symbotic 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 Symbotic are associated (or correlated) with TKB Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKB Critical Technologies has no effect on the direction of Symbotic i.e., Symbotic and TKB Critical go up and down completely randomly.

Pair Corralation between Symbotic and TKB Critical

If you would invest  2,241  in Symbotic on September 16, 2024 and sell it today you would earn a total of  446.00  from holding Symbotic or generate 19.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.08%
Values	Daily Returns

Symbotic  vs.  TKB Critical Technologies

Symbotic

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Symbotic are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Symbotic displayed solid returns over the last few months and may actually be approaching a breakup point.

TKB Critical Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TKB Critical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TKB Critical is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Symbotic and TKB Critical

The main advantage of trading using opposite Symbotic and TKB Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symbotic position performs unexpectedly, TKB Critical 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 TKB Critical will offset losses from the drop in TKB Critical's long position.

The idea behind Symbotic and TKB Critical Technologies 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.