Correlation Between Daelim Trading and TSI Co
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and TSI Co 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 Daelim Trading and TSI Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and TSI Co, you can compare the effects of market volatilities on Daelim Trading and TSI Co 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 Daelim Trading with a short position of TSI Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and TSI Co.
Diversification Opportunities for Daelim Trading and TSI Co
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and TSI is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and TSI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSI Co and Daelim Trading 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 Daelim Trading Co are associated (or correlated) with TSI Co. 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 Daelim Trading i.e., Daelim Trading and TSI Co go up and down completely randomly.
Pair Corralation between Daelim Trading and TSI Co
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate 0.8 times more return on investment than TSI Co. However, Daelim Trading Co is 1.26 times less risky than TSI Co. It trades about -0.18 of its potential returns per unit of risk. TSI Co is currently generating about -0.27 per unit of risk. If you would invest 289,000 in Daelim Trading Co on September 12, 2024 and sell it today you would lose (27,500) from holding Daelim Trading Co or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. TSI Co
Performance |
| Timeline |
| Daelim Trading |
| TSI Co |
Daelim Trading and TSI Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and TSI Co
The main advantage of trading using opposite Daelim Trading and TSI Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, TSI Co 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 Co will offset losses from the drop in TSI Co's long position.| Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. SK Hynix | Daelim Trading vs. POSCO Holdings |
| TSI Co vs. HyVision System | TSI Co vs. Daebo Magnetic CoLtd | TSI Co vs. Vitzro Tech Co | TSI Co vs. Solution Advanced Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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