Correlation Between TJ Media and Daou Data
Can any of the company-specific risk be diversified away by investing in both TJ Media and Daou Data 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 Daou Data 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 Daou Data Corp, you can compare the effects of market volatilities on TJ Media and Daou Data 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 Daou Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Daou Data.
Diversification Opportunities for TJ Media and Daou Data
Poor diversification
The 3 months correlation between 032540 and Daou is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Daou Data Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daou Data Corp 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 Daou Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daou Data Corp has no effect on the direction of TJ Media i.e., TJ Media and Daou Data go up and down completely randomly.
Pair Corralation between TJ Media and Daou Data
Assuming the 90 days trading horizon TJ media Co is expected to generate 0.82 times more return on investment than Daou Data. However, TJ media Co is 1.22 times less risky than Daou Data. It trades about -0.01 of its potential returns per unit of risk. Daou Data Corp is currently generating about -0.02 per unit of risk. If you would invest 537,169 in TJ media Co on September 14, 2024 and sell it today you would lose (43,169) from holding TJ media Co or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Daou Data Corp
Performance |
| Timeline |
| TJ media |
| Daou Data Corp |
TJ Media and Daou Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Daou Data
The main advantage of trading using opposite TJ Media and Daou Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Daou Data 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 Daou Data will offset losses from the drop in Daou Data's long position.| TJ Media vs. Daou Data Corp | TJ Media vs. Solution Advanced Technology | TJ Media vs. Busan Industrial Co | TJ Media vs. Busan Ind |
| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |