Correlation Between Taeyang Metal and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Taeyang Metal and Shinsegae Food 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 Taeyang Metal and Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taeyang Metal Industrial and Shinsegae Food, you can compare the effects of market volatilities on Taeyang Metal and Shinsegae Food 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 Taeyang Metal with a short position of Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taeyang Metal and Shinsegae Food.
Diversification Opportunities for Taeyang Metal and Shinsegae Food
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Taeyang and Shinsegae is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Taeyang Metal Industrial and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food and Taeyang Metal 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 Taeyang Metal Industrial are associated (or correlated) with Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Taeyang Metal i.e., Taeyang Metal and Shinsegae Food go up and down completely randomly.
Pair Corralation between Taeyang Metal and Shinsegae Food
Assuming the 90 days trading horizon Taeyang Metal Industrial is expected to generate 4.48 times more return on investment than Shinsegae Food. However, Taeyang Metal is 4.48 times more volatile than Shinsegae Food. It trades about 0.05 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.06 per unit of risk. If you would invest 252,624 in Taeyang Metal Industrial on September 2, 2024 and sell it today you would earn a total of 163,876 from holding Taeyang Metal Industrial or generate 64.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taeyang Metal Industrial vs. Shinsegae Food
Performance |
| Timeline |
| Taeyang Metal Industrial |
| Shinsegae Food |
Taeyang Metal and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taeyang Metal and Shinsegae Food
The main advantage of trading using opposite Taeyang Metal and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taeyang Metal position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Taeyang Metal vs. AptaBio Therapeutics | Taeyang Metal vs. Daewoo SBI SPAC | Taeyang Metal vs. Dream Security co | Taeyang Metal vs. Microfriend |
| Shinsegae Food vs. Eagle Veterinary Technology | Shinsegae Food vs. AurosTechnology | Shinsegae Food vs. Dongbang Transport Logistics | Shinsegae Food vs. Orbitech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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