Correlation Between Tuksu Engineering and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and DAEDUCK 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 DAEDUCK 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 DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Tuksu Engineering and DAEDUCK 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and DAEDUCK ELECTRONICS.
Diversification Opportunities for Tuksu Engineering and DAEDUCK ELECTRONICS
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tuksu and DAEDUCK is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Tuksu Engineering and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Tuksu Engineering is expected to generate 17.56 times less return on investment than DAEDUCK ELECTRONICS. In addition to that, Tuksu Engineering is 2.58 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about 0.0 of its total potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about 0.05 per unit of volatility. If you would invest 798,000 in DAEDUCK ELECTRONICS CoLtd on August 27, 2024 and sell it today you would earn a total of 11,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 1.38% 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. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Tuksu Engineering |
| DAEDUCK ELECTRONICS CoLtd |
Tuksu Engineering and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Tuksu Engineering and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, DAEDUCK 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's 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 |
| DAEDUCK ELECTRONICS vs. MEDIANA CoLtd | DAEDUCK ELECTRONICS vs. Hanjin Transportation Co | DAEDUCK ELECTRONICS vs. Barunson Entertainment Arts | DAEDUCK ELECTRONICS vs. Tamul Multimedia 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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