Correlation Between Hanjin Transportation and TS Investment
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and TS Investment 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 Hanjin Transportation and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and TS Investment Corp, you can compare the effects of market volatilities on Hanjin Transportation and TS Investment 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 Hanjin Transportation with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and TS Investment.
Diversification Opportunities for Hanjin Transportation and TS Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanjin and 246690 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and TS Investment go up and down completely randomly.
Pair Corralation between Hanjin Transportation and TS Investment
Assuming the 90 days trading horizon Hanjin Transportation is expected to generate 2.97 times less return on investment than TS Investment. But when comparing it to its historical volatility, Hanjin Transportation Co is 4.4 times less risky than TS Investment. It trades about 0.14 of its potential returns per unit of risk. TS Investment Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 85,700 in TS Investment Corp on November 3, 2024 and sell it today you would earn a total of 11,500 from holding TS Investment Corp or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjin Transportation Co vs. TS Investment Corp
Performance |
| Timeline |
| Hanjin Transportation |
| TS Investment Corp |
Hanjin Transportation and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and TS Investment
The main advantage of trading using opposite Hanjin Transportation and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, TS Investment 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 TS Investment will offset losses from the drop in TS Investment's long position.| Hanjin Transportation vs. KG Eco Technology | Hanjin Transportation vs. Infinitt Healthcare Co | Hanjin Transportation vs. SK Chemicals Co | Hanjin Transportation vs. Bosung Power Technology |
| TS Investment vs. Samyang Foods Co | TS Investment vs. Ssangyong Information Communication | TS Investment vs. SBI Investment KOREA | TS Investment vs. EBEST Investment Securities |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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