Correlation Between SH Energy and Tamul Multimedia
Can any of the company-specific risk be diversified away by investing in both SH Energy and Tamul Multimedia 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 SH Energy and Tamul Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SH Energy Chemical and Tamul Multimedia Co, you can compare the effects of market volatilities on SH Energy and Tamul Multimedia 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 SH Energy with a short position of Tamul Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SH Energy and Tamul Multimedia.
Diversification Opportunities for SH Energy and Tamul Multimedia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 002360 and Tamul is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SH Energy Chemical and Tamul Multimedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamul Multimedia and SH Energy 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 SH Energy Chemical are associated (or correlated) with Tamul Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamul Multimedia has no effect on the direction of SH Energy i.e., SH Energy and Tamul Multimedia go up and down completely randomly.
Pair Corralation between SH Energy and Tamul Multimedia
Assuming the 90 days trading horizon SH Energy Chemical is expected to generate 0.43 times more return on investment than Tamul Multimedia. However, SH Energy Chemical is 2.32 times less risky than Tamul Multimedia. It trades about -0.13 of its potential returns per unit of risk. Tamul Multimedia Co is currently generating about -0.39 per unit of risk. If you would invest 53,800 in SH Energy Chemical on November 7, 2024 and sell it today you would lose (2,300) from holding SH Energy Chemical or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SH Energy Chemical vs. Tamul Multimedia Co
Performance |
| Timeline |
| SH Energy Chemical |
| Tamul Multimedia |
SH Energy and Tamul Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SH Energy and Tamul Multimedia
The main advantage of trading using opposite SH Energy and Tamul Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SH Energy position performs unexpectedly, Tamul Multimedia 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 Tamul Multimedia will offset losses from the drop in Tamul Multimedia's long position.| SH Energy vs. Samsung Life Insurance | SH Energy vs. KG Eco Technology | SH Energy vs. Puloon Technology | SH Energy vs. Asia Technology Co |
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.
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