Correlation Between TJ Media and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both TJ Media and Jeong Moon 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 Jeong Moon 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 Jeong Moon Information, you can compare the effects of market volatilities on TJ Media and Jeong Moon 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 Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Jeong Moon.
Diversification Opportunities for TJ Media and Jeong Moon
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 032540 and Jeong is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information 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 Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of TJ Media i.e., TJ Media and Jeong Moon go up and down completely randomly.
Pair Corralation between TJ Media and Jeong Moon
Assuming the 90 days trading horizon TJ media Co is expected to under-perform the Jeong Moon. But the stock apears to be less risky and, when comparing its historical volatility, TJ media Co is 1.4 times less risky than Jeong Moon. The stock trades about -0.05 of its potential returns per unit of risk. The Jeong Moon Information is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 81,200 in Jeong Moon Information on November 8, 2024 and sell it today you would earn a total of 3,800 from holding Jeong Moon Information or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Jeong Moon Information
Performance |
| Timeline |
| TJ media |
| Jeong Moon Information |
TJ Media and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Jeong Moon
The main advantage of trading using opposite TJ Media and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| TJ Media vs. Samsung Electronics Co | TJ Media vs. Samsung Electronics Co | TJ Media vs. Hyundai Motor Co | TJ Media vs. Hyundai Motor |
| Jeong Moon vs. KMH Hitech Co | Jeong Moon vs. SEOWONINTECHCoLtd | Jeong Moon vs. Yura Tech Co | Jeong Moon vs. Next Entertainment World |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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