Correlation Between TJ Media and Solution Advanced
Can any of the company-specific risk be diversified away by investing in both TJ Media and Solution Advanced 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 Solution Advanced 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 Solution Advanced Technology, you can compare the effects of market volatilities on TJ Media and Solution Advanced 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 Solution Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Solution Advanced.
Diversification Opportunities for TJ Media and Solution Advanced
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 032540 and Solution is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Solution Advanced Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Advanced 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 Solution Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Advanced has no effect on the direction of TJ Media i.e., TJ Media and Solution Advanced go up and down completely randomly.
Pair Corralation between TJ Media and Solution Advanced
Assuming the 90 days trading horizon TJ media Co is expected to generate 0.41 times more return on investment than Solution Advanced. However, TJ media Co is 2.42 times less risky than Solution Advanced. It trades about -0.04 of its potential returns per unit of risk. Solution Advanced Technology is currently generating about -0.05 per unit of risk. If you would invest 550,178 in TJ media Co on November 3, 2024 and sell it today you would lose (68,178) from holding TJ media Co or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TJ media Co vs. Solution Advanced Technology
Performance |
| Timeline |
| TJ media |
| Solution Advanced |
TJ Media and Solution Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TJ Media and Solution Advanced
The main advantage of trading using opposite TJ Media and Solution Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Solution Advanced 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 Solution Advanced will offset losses from the drop in Solution Advanced'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 |
| Solution Advanced vs. Daishin Information Communications | Solution Advanced vs. Sejong Telecom | Solution Advanced vs. Hana Materials | Solution Advanced vs. Digital Power Communications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |