Correlation Between Sajo Seafood and TJ Media
Can any of the company-specific risk be diversified away by investing in both Sajo Seafood and TJ Media 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 Sajo Seafood and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sajo Seafood and TJ media Co, you can compare the effects of market volatilities on Sajo Seafood and TJ Media 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 Sajo Seafood with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sajo Seafood and TJ Media.
Diversification Opportunities for Sajo Seafood and TJ Media
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sajo and 032540 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sajo Seafood and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Sajo Seafood 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 Sajo Seafood are associated (or correlated) with TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Sajo Seafood i.e., Sajo Seafood and TJ Media go up and down completely randomly.
Pair Corralation between Sajo Seafood and TJ Media
Assuming the 90 days trading horizon Sajo Seafood is expected to under-perform the TJ Media. But the stock apears to be less risky and, when comparing its historical volatility, Sajo Seafood is 1.03 times less risky than TJ Media. The stock trades about -0.14 of its potential returns per unit of risk. The TJ media Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 460,973 in TJ media Co on October 17, 2024 and sell it today you would earn a total of 28,027 from holding TJ media Co or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sajo Seafood vs. TJ media Co
Performance |
| Timeline |
| Sajo Seafood |
| TJ media |
Sajo Seafood and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sajo Seafood and TJ Media
The main advantage of trading using opposite Sajo Seafood and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sajo Seafood position performs unexpectedly, TJ Media 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 TJ Media will offset losses from the drop in TJ Media's long position.| Sajo Seafood vs. Samsung Electronics Co | Sajo Seafood vs. Samsung Electronics Co | Sajo Seafood vs. LG Energy Solution | Sajo Seafood vs. SK Hynix |
| TJ Media vs. Daeduck Electronics Co | TJ Media vs. Daejoo Electronic Materials | TJ Media vs. Sajo Seafood | TJ Media vs. Seoul Electronics Telecom |
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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