Correlation Between Stic Investments and TS Investment
Can any of the company-specific risk be diversified away by investing in both Stic Investments and TS Investment 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 Stic Investments and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and TS Investment Corp, you can compare the effects of market volatilities on Stic Investments and TS Investment 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 Stic Investments with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and TS Investment.
Diversification Opportunities for Stic Investments and TS Investment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stic and 246690 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp and Stic Investments 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 Stic Investments are associated (or correlated) with TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Stic Investments i.e., Stic Investments and TS Investment go up and down completely randomly.
Pair Corralation between Stic Investments and TS Investment
Assuming the 90 days trading horizon Stic Investments is expected to generate 1.07 times more return on investment than TS Investment. However, Stic Investments is 1.07 times more volatile than TS Investment Corp. It trades about 0.13 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.31 per unit of risk. If you would invest 809,000 in Stic Investments on September 5, 2024 and sell it today you would earn a total of 50,000 from holding Stic Investments or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. TS Investment Corp
Performance |
| Timeline |
| Stic Investments |
| TS Investment Corp |
Stic Investments and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and TS Investment
The main advantage of trading using opposite Stic Investments and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, TS Investment 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 TS Investment will offset losses from the drop in TS Investment's long position.| Stic Investments vs. DB Insurance Co | Stic Investments vs. Jinro Distillers Co | Stic Investments vs. Pureun Mutual Savings | Stic Investments vs. Koryo Credit Information |
| TS Investment vs. Hyosung Advanced Materials | TS Investment vs. National Plastic Co | TS Investment vs. Jeil Steel Mfg | TS Investment vs. Dongbu Steel 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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