Correlation Between TJ Media and Insung Information
Can any of the company-specific risk be diversified away by investing in both TJ Media and Insung Information 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 Insung Information 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 Insung Information Co, you can compare the effects of market volatilities on TJ Media and Insung Information 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 Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Insung Information.
Diversification Opportunities for TJ Media and Insung Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 032540 and Insung is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung 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 Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of TJ Media i.e., TJ Media and Insung Information go up and down completely randomly.
Pair Corralation between TJ Media and Insung Information
Assuming the 90 days trading horizon TJ media Co is expected to under-perform the Insung Information. But the stock apears to be less risky and, when comparing its historical volatility, TJ media Co is 2.34 times less risky than Insung Information. The stock trades about -0.05 of its potential returns per unit of risk. The Insung Information Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 185,500 in Insung Information Co on September 13, 2024 and sell it today you would earn a total of 3,900 from holding Insung Information Co or generate 2.1% 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. Insung Information Co
Performance |
| Timeline |
| TJ media |
| Insung Information |
TJ Media and Insung Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Insung Information
The main advantage of trading using opposite TJ Media and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information'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 |
| Insung Information vs. Phoenix Materials Co | Insung Information vs. WONIK Materials CoLtd | Insung Information vs. Shinhan Inverse Copper | Insung Information vs. MetaLabs 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |