Correlation Between Korean Reinsurance and TS Investment
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance 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 Korean Reinsurance and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korean Reinsurance Co and TS Investment Corp, you can compare the effects of market volatilities on Korean Reinsurance 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 Korean Reinsurance with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and TS Investment.
Diversification Opportunities for Korean Reinsurance and TS Investment
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korean and 246690 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance 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 Korean Reinsurance 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 Korean Reinsurance 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 Korean Reinsurance i.e., Korean Reinsurance and TS Investment go up and down completely randomly.
Pair Corralation between Korean Reinsurance and TS Investment
Assuming the 90 days trading horizon Korean Reinsurance Co is expected to generate 0.57 times more return on investment than TS Investment. However, Korean Reinsurance Co is 1.76 times less risky than TS Investment. It trades about 0.15 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.32 per unit of risk. If you would invest 782,500 in Korean Reinsurance Co on September 4, 2024 and sell it today you would earn a total of 30,500 from holding Korean Reinsurance Co or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korean Reinsurance Co vs. TS Investment Corp
Performance |
| Timeline |
| Korean Reinsurance |
| TS Investment Corp |
Korean Reinsurance and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and TS Investment
The main advantage of trading using opposite Korean Reinsurance and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance 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.| Korean Reinsurance vs. AptaBio Therapeutics | Korean Reinsurance vs. Daewoo SBI SPAC | Korean Reinsurance vs. Dream Security co | Korean Reinsurance vs. Microfriend |
| TS Investment vs. Samsung Electronics Co | TS Investment vs. Samsung Electronics Co | TS Investment vs. LG Energy Solution | TS Investment vs. SK Hynix |
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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