Correlation Between Tuksu Engineering and HJ ShipBuilding
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and HJ ShipBuilding 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 HJ ShipBuilding 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 HJ ShipBuilding Construction, you can compare the effects of market volatilities on Tuksu Engineering and HJ ShipBuilding 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 HJ ShipBuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and HJ ShipBuilding.
Diversification Opportunities for Tuksu Engineering and HJ ShipBuilding
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tuksu and 097230 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and HJ ShipBuilding Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJ ShipBuilding Cons 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 HJ ShipBuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJ ShipBuilding Cons has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and HJ ShipBuilding go up and down completely randomly.
Pair Corralation between Tuksu Engineering and HJ ShipBuilding
Assuming the 90 days trading horizon Tuksu Engineering is expected to generate 8.68 times less return on investment than HJ ShipBuilding. But when comparing it to its historical volatility, Tuksu Engineering ConstructionLtd is 3.05 times less risky than HJ ShipBuilding. It trades about 0.02 of its potential returns per unit of risk. HJ ShipBuilding Construction is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 611,000 in HJ ShipBuilding Construction on November 27, 2024 and sell it today you would earn a total of 23,000 from holding HJ ShipBuilding Construction or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. HJ ShipBuilding Construction
Performance |
| Timeline |
| Tuksu Engineering |
| HJ ShipBuilding Cons |
Tuksu Engineering and HJ ShipBuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and HJ ShipBuilding
The main advantage of trading using opposite Tuksu Engineering and HJ ShipBuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, HJ ShipBuilding 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 HJ ShipBuilding will offset losses from the drop in HJ ShipBuilding'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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