Correlation Between Tuksu Engineering and Digital Imaging
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and Digital Imaging 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 Digital Imaging 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 Digital Imaging Technology, you can compare the effects of market volatilities on Tuksu Engineering and Digital Imaging 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 Digital Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Digital Imaging.
Diversification Opportunities for Tuksu Engineering and Digital Imaging
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuksu and Digital is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Digital Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Imaging Tech 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 Digital Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Imaging Tech has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and Digital Imaging go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Digital Imaging
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to under-perform the Digital Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Tuksu Engineering ConstructionLtd is 1.8 times less risky than Digital Imaging. The stock trades about -0.02 of its potential returns per unit of risk. The Digital Imaging Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,985,492 in Digital Imaging Technology on September 21, 2024 and sell it today you would lose (690,492) from holding Digital Imaging Technology or give up 34.78% 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. Digital Imaging Technology
Performance |
| Timeline |
| Tuksu Engineering |
| Digital Imaging Tech |
Tuksu Engineering and Digital Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Digital Imaging
The main advantage of trading using opposite Tuksu Engineering and Digital Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, Digital Imaging 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 Digital Imaging will offset losses from the drop in Digital Imaging's long position.| Tuksu Engineering vs. Korea New Network | Tuksu Engineering vs. Solution Advanced Technology | Tuksu Engineering vs. Busan Industrial Co | Tuksu Engineering vs. Busan Ind |
| Digital Imaging vs. Keyang Electric Machinery | Digital Imaging vs. Kukdo Chemical Co | Digital Imaging vs. Korea Petro Chemical | Digital Imaging vs. Tuksu Engineering ConstructionLtd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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