Correlation Between TKS Technologies and Plus Tech
Can any of the company-specific risk be diversified away by investing in both TKS Technologies and Plus Tech 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 Plus Tech 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 Plus Tech Innovation, you can compare the effects of market volatilities on TKS Technologies and Plus Tech 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 Plus Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKS Technologies and Plus Tech.
Diversification Opportunities for TKS Technologies and Plus Tech
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TKS and Plus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding TKS Technologies Public and Plus Tech Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plus Tech Innovation 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 Plus Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plus Tech Innovation has no effect on the direction of TKS Technologies i.e., TKS Technologies and Plus Tech go up and down completely randomly.
Pair Corralation between TKS Technologies and Plus Tech
Assuming the 90 days trading horizon TKS Technologies Public is expected to generate 0.14 times more return on investment than Plus Tech. However, TKS Technologies Public is 7.38 times less risky than Plus Tech. It trades about -0.38 of its potential returns per unit of risk. Plus Tech Innovation is currently generating about -0.21 per unit of risk. If you would invest 700.00 in TKS Technologies Public on September 23, 2024 and sell it today you would lose (115.00) from holding TKS Technologies Public or give up 16.43% 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. Plus Tech Innovation
Performance |
Timeline |
TKS Technologies Public |
Plus Tech Innovation |
TKS Technologies and Plus Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TKS Technologies and Plus Tech
The main advantage of trading using opposite TKS Technologies and Plus Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKS Technologies position performs unexpectedly, Plus Tech 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 Plus Tech will offset losses from the drop in Plus Tech's long position.TKS Technologies vs. Land and Houses | TKS Technologies vs. CH Karnchang Public | TKS Technologies vs. Krung Thai Bank | TKS Technologies vs. Bangkok Bank 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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