Correlation Between TEAM Consulting and Teka Construction

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

By analyzing existing cross correlation between TEAM Consulting Engineering and Teka Construction PCL, you can compare the effects of market volatilities on TEAM Consulting and Teka Construction 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 TEAM Consulting with a short position of Teka Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEAM Consulting and Teka Construction.

Diversification Opportunities for TEAM Consulting and Teka Construction

0.0

Correlation Coefficient

TEAM Consulting  Teka Construction

Pay attention - limited upside

The 3 months correlation between TEAM and Teka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TEAM Consulting Engineering and Teka Construction PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teka Construction PCL and TEAM Consulting 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 TEAM Consulting Engineering are associated (or correlated) with Teka Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teka Construction PCL has no effect on the direction of TEAM Consulting i.e., TEAM Consulting and Teka Construction go up and down completely randomly.

Pair Corralation between TEAM Consulting and Teka Construction

If you would invest  0.00  in TEAM Consulting Engineering on September 3, 2024 and sell it today you would earn a total of  0.00  from holding TEAM Consulting Engineering or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

TEAM Consulting Engineering  vs.  Teka Construction PCL

TEAM Consulting Engi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TEAM Consulting Engineering has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, TEAM Consulting is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Teka Construction PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teka Construction PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with TEAM Consulting and Teka Construction

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

The idea behind TEAM Consulting Engineering and Teka Construction PCL 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.