Correlation Between TJ Media and Vissem Electronics
Can any of the company-specific risk be diversified away by investing in both TJ Media and Vissem Electronics 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 Vissem Electronics 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 Vissem Electronics Co, you can compare the effects of market volatilities on TJ Media and Vissem Electronics 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 Vissem Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Vissem Electronics.
Diversification Opportunities for TJ Media and Vissem Electronics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 032540 and Vissem is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Vissem Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vissem Electronics 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 Vissem Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vissem Electronics has no effect on the direction of TJ Media i.e., TJ Media and Vissem Electronics go up and down completely randomly.
Pair Corralation between TJ Media and Vissem Electronics
Assuming the 90 days trading horizon TJ media Co is expected to generate 1.29 times more return on investment than Vissem Electronics. However, TJ Media is 1.29 times more volatile than Vissem Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Vissem Electronics Co is currently generating about -0.07 per unit of risk. If you would invest 477,000 in TJ media Co on November 7, 2024 and sell it today you would earn a total of 5,000 from holding TJ media Co or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Vissem Electronics Co
Performance |
| Timeline |
| TJ media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Vissem Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TJ Media and Vissem Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Vissem Electronics
The main advantage of trading using opposite TJ Media and Vissem Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Vissem Electronics 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 Vissem Electronics will offset losses from the drop in Vissem Electronics' long position.| TJ Media vs. Samsung Electronics Co | TJ Media vs. Samsung Electronics Co | TJ Media vs. Hyundai Motor Co | TJ Media vs. LG Electronics |
| Vissem Electronics vs. Puloon Technology | Vissem Electronics vs. LAKE MATERIALS LTD | Vissem Electronics vs. Polaris Office Corp | Vissem Electronics vs. Seoul Electronics Telecom |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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