Correlation Between TJ Media and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both TJ Media and Tae Kyung 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 Tae Kyung 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 Tae Kyung Chemical, you can compare the effects of market volatilities on TJ Media and Tae Kyung 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 Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Tae Kyung.
Diversification Opportunities for TJ Media and Tae Kyung
Weak diversification
The 3 months correlation between 032540 and Tae is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical 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 Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of TJ Media i.e., TJ Media and Tae Kyung go up and down completely randomly.
Pair Corralation between TJ Media and Tae Kyung
Assuming the 90 days trading horizon TJ media Co is expected to under-perform the Tae Kyung. But the stock apears to be less risky and, when comparing its historical volatility, TJ media Co is 1.2 times less risky than Tae Kyung. The stock trades about -0.36 of its potential returns per unit of risk. The Tae Kyung Chemical is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,095,000 in Tae Kyung Chemical on August 27, 2024 and sell it today you would lose (6,000) from holding Tae Kyung Chemical or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Tae Kyung Chemical
Performance |
| Timeline |
| TJ media |
| Tae Kyung Chemical |
TJ Media and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Tae Kyung
The main advantage of trading using opposite TJ Media and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| TJ Media vs. Daehan Steel | TJ Media vs. Samyang Foods Co | TJ Media vs. Miwon Chemical | TJ Media vs. Jinro Distillers Co |
| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung vs. Microfriend |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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