Correlation Between Tuksu Engineering and GS Engineering
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and GS Engineering 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 Tuksu Engineering and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuksu Engineering ConstructionLtd and GS Engineering Construction, you can compare the effects of market volatilities on Tuksu Engineering and GS Engineering 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 Tuksu Engineering with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and GS Engineering.
Diversification Opportunities for Tuksu Engineering and GS Engineering
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuksu and 006360 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and Tuksu Engineering 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 Tuksu Engineering ConstructionLtd are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and GS Engineering go up and down completely randomly.
Pair Corralation between Tuksu Engineering and GS Engineering
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to under-perform the GS Engineering. In addition to that, Tuksu Engineering is 1.04 times more volatile than GS Engineering Construction. It trades about 0.0 of its total potential returns per unit of risk. GS Engineering Construction is currently generating about 0.01 per unit of volatility. If you would invest 1,938,240 in GS Engineering Construction on November 27, 2024 and sell it today you would lose (93,240) from holding GS Engineering Construction or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. GS Engineering Construction
Performance |
| Timeline |
| Tuksu Engineering |
| GS Engineering Const |
Tuksu Engineering and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and GS Engineering
The main advantage of trading using opposite Tuksu Engineering and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| Tuksu Engineering vs. Eugene Investment Securities | Tuksu Engineering vs. Daejung Chemicals Metals | Tuksu Engineering vs. SV Investment | Tuksu Engineering vs. Kukil Metal Co |
| GS Engineering vs. Korean Reinsurance Co | GS Engineering vs. Daechang Steel Co | GS Engineering vs. DataSolution | GS Engineering vs. Samsung Life Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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