Correlation Between TJ Media and Dongil Metal
Can any of the company-specific risk be diversified away by investing in both TJ Media and Dongil Metal 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 Dongil Metal 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 Dongil Metal Co, you can compare the effects of market volatilities on TJ Media and Dongil Metal 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 Dongil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Dongil Metal.
Diversification Opportunities for TJ Media and Dongil Metal
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 032540 and Dongil is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Dongil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Metal 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 Dongil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Metal has no effect on the direction of TJ Media i.e., TJ Media and Dongil Metal go up and down completely randomly.
Pair Corralation between TJ Media and Dongil Metal
Assuming the 90 days trading horizon TJ media Co is expected to generate 0.72 times more return on investment than Dongil Metal. However, TJ media Co is 1.39 times less risky than Dongil Metal. It trades about -0.02 of its potential returns per unit of risk. Dongil Metal Co is currently generating about -0.07 per unit of risk. If you would invest 620,585 in TJ media Co on October 16, 2024 and sell it today you would lose (147,085) from holding TJ media Co or give up 23.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.51% |
| Values | Daily Returns |
TJ media Co vs. Dongil Metal Co
Performance |
| Timeline |
| TJ media |
| Dongil Metal |
TJ Media and Dongil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Dongil Metal
The main advantage of trading using opposite TJ Media and Dongil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Dongil Metal 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 Dongil Metal will offset losses from the drop in Dongil Metal's long position.| TJ Media vs. FoodNamoo | TJ Media vs. Samyang Foods Co | TJ Media vs. KCC Engineering Construction | TJ Media vs. ENERGYMACHINERY KOREA CoLtd |
| Dongil Metal vs. Korea Petro Chemical | Dongil Metal vs. SKONEC Entertainment Co | Dongil Metal vs. Pan Entertainment Co | Dongil Metal vs. TJ media 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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