Correlation Between Daeduck Electronics and TS Investment
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics 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 Daeduck Electronics and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daeduck Electronics Co and TS Investment Corp, you can compare the effects of market volatilities on Daeduck Electronics 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 Daeduck Electronics with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and TS Investment.
Diversification Opportunities for Daeduck Electronics and TS Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daeduck and 246690 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics 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 Daeduck Electronics 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 Daeduck Electronics 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 Daeduck Electronics i.e., Daeduck Electronics and TS Investment go up and down completely randomly.
Pair Corralation between Daeduck Electronics and TS Investment
Assuming the 90 days trading horizon Daeduck Electronics Co is expected to generate 0.21 times more return on investment than TS Investment. However, Daeduck Electronics Co is 4.76 times less risky than TS Investment. It trades about -0.08 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.13 per unit of risk. If you would invest 684,000 in Daeduck Electronics Co on November 5, 2024 and sell it today you would lose (3,000) from holding Daeduck Electronics Co or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. TS Investment Corp
Performance |
| Timeline |
| Daeduck Electronics |
| TS Investment Corp |
Daeduck Electronics and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and TS Investment
The main advantage of trading using opposite Daeduck Electronics and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics 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.| Daeduck Electronics vs. Daehan Steel | Daeduck Electronics vs. Industrial Bank | Daeduck Electronics vs. Shinhan Financial Group | Daeduck Electronics vs. KB Financial Group |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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