Correlation Between Tae Kyung and S Fuelcell
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and S Fuelcell 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 S Fuelcell 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 S Fuelcell co, you can compare the effects of market volatilities on Tae Kyung and S Fuelcell 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 S Fuelcell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and S Fuelcell.
Diversification Opportunities for Tae Kyung and S Fuelcell
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tae and 288620 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and S Fuelcell co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Fuelcell co 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 S Fuelcell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Fuelcell co has no effect on the direction of Tae Kyung i.e., Tae Kyung and S Fuelcell go up and down completely randomly.
Pair Corralation between Tae Kyung and S Fuelcell
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to under-perform the S Fuelcell. In addition to that, Tae Kyung is 1.04 times more volatile than S Fuelcell co. It trades about 0.0 of its total potential returns per unit of risk. S Fuelcell co is currently generating about 0.08 per unit of volatility. If you would invest 925,000 in S Fuelcell co on October 24, 2024 and sell it today you would earn a total of 22,000 from holding S Fuelcell co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. S Fuelcell co
Performance |
| Timeline |
| Tae Kyung Chemical |
| S Fuelcell co |
Tae Kyung and S Fuelcell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and S Fuelcell
The main advantage of trading using opposite Tae Kyung and S Fuelcell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, S Fuelcell 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 S Fuelcell will offset losses from the drop in S Fuelcell's long position.| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung vs. Microfriend |
| S Fuelcell vs. Korea Petro Chemical | S Fuelcell vs. LG Household Healthcare | S Fuelcell vs. Youl Chon Chemical | S Fuelcell vs. Tae Kyung 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 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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