Correlation Between Tuksu Engineering and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and Anam Electronics 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 Anam Electronics 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 Anam Electronics Co, you can compare the effects of market volatilities on Tuksu Engineering and Anam Electronics 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 Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Anam Electronics.
Diversification Opportunities for Tuksu Engineering and Anam Electronics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tuksu and Anam is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics 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 Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and Anam Electronics go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Anam Electronics
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to generate 1.81 times more return on investment than Anam Electronics. However, Tuksu Engineering is 1.81 times more volatile than Anam Electronics Co. It trades about 0.0 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.23 per unit of risk. If you would invest 624,000 in Tuksu Engineering ConstructionLtd on August 27, 2024 and sell it today you would lose (8,000) from holding Tuksu Engineering ConstructionLtd or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. Anam Electronics Co
Performance |
| Timeline |
| Tuksu Engineering |
| Anam Electronics |
Tuksu Engineering and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Anam Electronics
The main advantage of trading using opposite Tuksu Engineering and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Tuksu Engineering vs. Kukil Metal Co | Tuksu Engineering vs. DB Insurance Co | Tuksu Engineering vs. Daedong Metals Co | Tuksu Engineering vs. Taegu Broadcasting |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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