Correlation Between Tuksu Engineering and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Tuksu Engineering and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Koryo Credit.
Diversification Opportunities for Tuksu Engineering and Koryo Credit
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tuksu and Koryo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and Koryo Credit go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Koryo Credit
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to generate 2.44 times more return on investment than Koryo Credit. However, Tuksu Engineering is 2.44 times more volatile than Koryo Credit Information. It trades about 0.12 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.29 per unit of risk. If you would invest 651,000 in Tuksu Engineering ConstructionLtd on November 3, 2024 and sell it today you would earn a total of 23,000 from holding Tuksu Engineering ConstructionLtd or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. Koryo Credit Information
Performance |
| Timeline |
| Tuksu Engineering |
| Koryo Credit Information |
Tuksu Engineering and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Koryo Credit
The main advantage of trading using opposite Tuksu Engineering and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Tuksu Engineering vs. Dongkuk Structures Construction | Tuksu Engineering vs. KT Submarine Telecom | Tuksu Engineering vs. GS Engineering Construction | Tuksu Engineering vs. ENERGYMACHINERY KOREA CoLtd |
| Koryo Credit vs. Dongwoo Farm To | Koryo Credit vs. Seohee Construction Co | Koryo Credit vs. Camus Engineering Construction | Koryo Credit vs. Woorim Machinery Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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