Correlation Between Tuksu Engineering and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and KT Submarine 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 KT Submarine 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 KT Submarine Telecom, you can compare the effects of market volatilities on Tuksu Engineering and KT Submarine 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 KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and KT Submarine.
Diversification Opportunities for Tuksu Engineering and KT Submarine
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tuksu and 060370 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and KT Submarine Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine Telecom 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 KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine Telecom has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and KT Submarine go up and down completely randomly.
Pair Corralation between Tuksu Engineering and KT Submarine
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to generate 0.71 times more return on investment than KT Submarine. However, Tuksu Engineering ConstructionLtd is 1.41 times less risky than KT Submarine. It trades about 0.03 of its potential returns per unit of risk. KT Submarine Telecom is currently generating about -0.03 per unit of risk. If you would invest 624,000 in Tuksu Engineering ConstructionLtd on August 29, 2024 and sell it today you would earn a total of 9,000 from holding Tuksu Engineering ConstructionLtd or generate 1.44% 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. KT Submarine Telecom
Performance |
| Timeline |
| Tuksu Engineering |
| KT Submarine Telecom |
Tuksu Engineering and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and KT Submarine
The main advantage of trading using opposite Tuksu Engineering and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Hyundai Motor Co | Tuksu Engineering vs. Hyundai Motor |
| KT Submarine vs. AptaBio Therapeutics | KT Submarine vs. Daewoo SBI SPAC | KT Submarine vs. Dream Security co | KT Submarine 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets |