Correlation Between Iljin Display and Tamul Multimedia
Can any of the company-specific risk be diversified away by investing in both Iljin Display and Tamul Multimedia 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 Iljin Display and Tamul Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Tamul Multimedia Co, you can compare the effects of market volatilities on Iljin Display and Tamul Multimedia 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 Iljin Display with a short position of Tamul Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Tamul Multimedia.
Diversification Opportunities for Iljin Display and Tamul Multimedia
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iljin and Tamul is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and Tamul Multimedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamul Multimedia and Iljin Display 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 Iljin Display are associated (or correlated) with Tamul Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamul Multimedia has no effect on the direction of Iljin Display i.e., Iljin Display and Tamul Multimedia go up and down completely randomly.
Pair Corralation between Iljin Display and Tamul Multimedia
Assuming the 90 days trading horizon Iljin Display is expected to under-perform the Tamul Multimedia. But the stock apears to be less risky and, when comparing its historical volatility, Iljin Display is 2.5 times less risky than Tamul Multimedia. The stock trades about -0.25 of its potential returns per unit of risk. The Tamul Multimedia Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 420,000 in Tamul Multimedia Co on August 30, 2024 and sell it today you would earn a total of 7,000 from holding Tamul Multimedia Co or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. Tamul Multimedia Co
Performance |
| Timeline |
| Iljin Display |
| Tamul Multimedia |
Iljin Display and Tamul Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and Tamul Multimedia
The main advantage of trading using opposite Iljin Display and Tamul Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display position performs unexpectedly, Tamul Multimedia 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 Tamul Multimedia will offset losses from the drop in Tamul Multimedia's long position.| Iljin Display vs. LG Display Co | Iljin Display vs. Organic Special Pet | Iljin Display vs. Display Tech Co | Iljin Display vs. ABOV Semiconductor Co |
| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. LX Semicon Co | Tamul Multimedia vs. People Technology | Tamul Multimedia vs. Hana Materials |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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