Correlation Between Sangsangin Investment and TSI
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and TSI 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 Sangsangin Investment and TSI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and TSI Co, you can compare the effects of market volatilities on Sangsangin Investment and TSI 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 Sangsangin Investment with a short position of TSI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and TSI.
Diversification Opportunities for Sangsangin Investment and TSI
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sangsangin and TSI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and TSI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSI Co and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with TSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSI Co has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and TSI go up and down completely randomly.
Pair Corralation between Sangsangin Investment and TSI
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.54 times more return on investment than TSI. However, Sangsangin Investment Securities is 1.84 times less risky than TSI. It trades about -0.09 of its potential returns per unit of risk. TSI Co is currently generating about -0.35 per unit of risk. If you would invest 45,100 in Sangsangin Investment Securities on September 4, 2024 and sell it today you would lose (1,200) from holding Sangsangin Investment Securities or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. TSI Co
Performance |
| Timeline |
| Sangsangin Investment |
| TSI Co |
Sangsangin Investment and TSI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and TSI
The main advantage of trading using opposite Sangsangin Investment and TSI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, TSI 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 TSI will offset losses from the drop in TSI's long position.| Sangsangin Investment vs. Dongjin Semichem Co | Sangsangin Investment vs. AhnLab Inc | Sangsangin Investment vs. Posco ICT | Sangsangin Investment vs. CJ ENM |
| TSI vs. Lotte Non Life Insurance | TSI vs. Kukil Metal Co | TSI vs. DONGKUK TED METAL | TSI vs. Taeyang Metal Industrial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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