Correlation Between Semyung Electric and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Semyung Electric and Tae Kyung 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 Semyung Electric and Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semyung Electric Machinery and Tae Kyung Chemical, you can compare the effects of market volatilities on Semyung Electric and Tae Kyung 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 Semyung Electric with a short position of Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semyung Electric and Tae Kyung.
Diversification Opportunities for Semyung Electric and Tae Kyung
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Semyung and Tae is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Semyung Electric Machinery and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical and Semyung Electric 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 Semyung Electric Machinery are associated (or correlated) with Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Semyung Electric i.e., Semyung Electric and Tae Kyung go up and down completely randomly.
Pair Corralation between Semyung Electric and Tae Kyung
Assuming the 90 days trading horizon Semyung Electric Machinery is expected to under-perform the Tae Kyung. In addition to that, Semyung Electric is 1.66 times more volatile than Tae Kyung Chemical. It trades about -0.12 of its total potential returns per unit of risk. Tae Kyung Chemical is currently generating about -0.03 per unit of volatility. If you would invest 1,139,000 in Tae Kyung Chemical on September 2, 2024 and sell it today you would lose (51,000) from holding Tae Kyung Chemical or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semyung Electric Machinery vs. Tae Kyung Chemical
Performance |
| Timeline |
| Semyung Electric Mac |
| Tae Kyung Chemical |
Semyung Electric and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semyung Electric and Tae Kyung
The main advantage of trading using opposite Semyung Electric and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semyung Electric position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| Semyung Electric vs. Dawonsys CoLtd | Semyung Electric vs. Robostar CoLtd | Semyung Electric vs. Daebo Magnetic CoLtd | Semyung Electric vs. Vitzro Tech Co |
| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung vs. Microfriend |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |