Correlation Between TJ Media and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both TJ Media and Sangsangin 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 TJ Media and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TJ media Co and Sangsangin Investment Securities, you can compare the effects of market volatilities on TJ Media and Sangsangin 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 TJ Media with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Sangsangin Investment.
Diversification Opportunities for TJ Media and Sangsangin Investment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 032540 and Sangsangin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and TJ Media 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 TJ media Co are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of TJ Media i.e., TJ Media and Sangsangin Investment go up and down completely randomly.
Pair Corralation between TJ Media and Sangsangin Investment
Assuming the 90 days trading horizon TJ Media is expected to generate 1.3 times less return on investment than Sangsangin Investment. In addition to that, TJ Media is 1.1 times more volatile than Sangsangin Investment Securities. It trades about 0.16 of its total potential returns per unit of risk. Sangsangin Investment Securities is currently generating about 0.23 per unit of volatility. If you would invest 41,300 in Sangsangin Investment Securities on October 11, 2024 and sell it today you would earn a total of 1,900 from holding Sangsangin Investment Securities or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| TJ media |
| Sangsangin Investment |
TJ Media and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Sangsangin Investment
The main advantage of trading using opposite TJ Media and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Sangsangin 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| TJ Media vs. Kolon Plastics | TJ Media vs. Hyosung Advanced Materials | TJ Media vs. EV Advanced Material | TJ Media vs. Phoenix Materials Co |
| Sangsangin Investment vs. Samsung Life Insurance | Sangsangin Investment vs. Sangsin Energy Display | Sangsangin Investment vs. TJ media Co | Sangsangin Investment vs. Nasmedia 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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