Correlation Between Takuni Group and TV Thunder

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

By analyzing existing cross correlation between Takuni Group Public and TV Thunder Public, you can compare the effects of market volatilities on Takuni Group and TV Thunder 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 Takuni Group with a short position of TV Thunder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takuni Group and TV Thunder.

Diversification Opportunities for Takuni Group and TV Thunder

0.96

Correlation Coefficient

Takuni Group  TV Thunder

Almost no diversification

The 3 months correlation between Takuni and TVT is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Takuni Group Public and TV Thunder Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TV Thunder Public and Takuni Group 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 Takuni Group Public are associated (or correlated) with TV Thunder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TV Thunder Public has no effect on the direction of Takuni Group i.e., Takuni Group and TV Thunder go up and down completely randomly.

Pair Corralation between Takuni Group and TV Thunder

Assuming the 90 days trading horizon Takuni Group Public is expected to generate 1.59 times more return on investment than TV Thunder. However, Takuni Group is 1.59 times more volatile than TV Thunder Public. It trades about -0.07 of its potential returns per unit of risk. TV Thunder Public is currently generating about -0.11 per unit of risk. If you would invest  93.00  in Takuni Group Public on October 26, 2024 and sell it today you would lose (34.00) from holding Takuni Group Public or give up 36.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Takuni Group Public  vs.  TV Thunder Public

Takuni Group Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Takuni Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TV Thunder Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TV Thunder Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Takuni Group and TV Thunder

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

The idea behind Takuni Group Public and TV Thunder Public 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.