Correlation Between TJ Media and SillaJen
Can any of the company-specific risk be diversified away by investing in both TJ Media and SillaJen 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 SillaJen 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 SillaJen, you can compare the effects of market volatilities on TJ Media and SillaJen 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 SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and SillaJen.
Diversification Opportunities for TJ Media and SillaJen
Significant diversification
The 3 months correlation between 032540 and SillaJen is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen 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 SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of TJ Media i.e., TJ Media and SillaJen go up and down completely randomly.
Pair Corralation between TJ Media and SillaJen
Assuming the 90 days trading horizon TJ media Co is expected to generate 0.48 times more return on investment than SillaJen. However, TJ media Co is 2.1 times less risky than SillaJen. It trades about -0.08 of its potential returns per unit of risk. SillaJen is currently generating about -0.07 per unit of risk. If you would invest 600,000 in TJ media Co on September 3, 2024 and sell it today you would lose (129,500) from holding TJ media Co or give up 21.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. SillaJen
Performance |
| Timeline |
| TJ media |
| SillaJen |
TJ Media and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and SillaJen
The main advantage of trading using opposite TJ Media and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, SillaJen 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 SillaJen will offset losses from the drop in SillaJen's long position.| TJ Media vs. Wave Electronics Co | TJ Media vs. Fine Besteel Co | TJ Media vs. Anam Electronics Co | TJ Media vs. Dongbu Steel Co |
| SillaJen vs. Kyung In Synthetic Corp | SillaJen vs. Kukdong Oil Chemicals | SillaJen vs. KyungIn Electronics Co | SillaJen vs. Korea Petro Chemical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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