Correlation Between Tae Kyung and LegoChem Biosciences
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and LegoChem Biosciences 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 Tae Kyung and LegoChem Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and LegoChem Biosciences, you can compare the effects of market volatilities on Tae Kyung and LegoChem Biosciences 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 Tae Kyung with a short position of LegoChem Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and LegoChem Biosciences.
Diversification Opportunities for Tae Kyung and LegoChem Biosciences
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tae and LegoChem is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and LegoChem Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LegoChem Biosciences and Tae Kyung 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 Tae Kyung Chemical are associated (or correlated) with LegoChem Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LegoChem Biosciences has no effect on the direction of Tae Kyung i.e., Tae Kyung and LegoChem Biosciences go up and down completely randomly.
Pair Corralation between Tae Kyung and LegoChem Biosciences
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to under-perform the LegoChem Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Tae Kyung Chemical is 1.89 times less risky than LegoChem Biosciences. The stock trades about -0.01 of its potential returns per unit of risk. The LegoChem Biosciences is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,980,000 in LegoChem Biosciences on September 4, 2024 and sell it today you would earn a total of 5,810,000 from holding LegoChem Biosciences or generate 145.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. LegoChem Biosciences
Performance |
| Timeline |
| Tae Kyung Chemical |
| LegoChem Biosciences |
Tae Kyung and LegoChem Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and LegoChem Biosciences
The main advantage of trading using opposite Tae Kyung and LegoChem Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, LegoChem Biosciences 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 LegoChem Biosciences will offset losses from the drop in LegoChem Biosciences' long position.| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung vs. Microfriend |
| LegoChem Biosciences vs. Sungwoo Electronics Co | LegoChem Biosciences vs. Automobile Pc | LegoChem Biosciences vs. Kukdong Oil Chemicals | LegoChem Biosciences vs. Namhae Chemical |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |