Correlation Between TJ Media and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both TJ Media and Shinhan Inverse 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 Shinhan Inverse 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 Shinhan Inverse Copper, you can compare the effects of market volatilities on TJ Media and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of TJ Media and Shinhan Inverse.
Diversification Opportunities for TJ Media and Shinhan Inverse
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 032540 and Shinhan is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding TJ media Co and Shinhan Inverse Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Copper 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse Copper has no effect on the direction of TJ Media i.e., TJ Media and Shinhan Inverse go up and down completely randomly.
Pair Corralation between TJ Media and Shinhan Inverse
Assuming the 90 days trading horizon TJ media Co is expected to generate 1.16 times more return on investment than Shinhan Inverse. However, TJ Media is 1.16 times more volatile than Shinhan Inverse Copper. It trades about 0.23 of its potential returns per unit of risk. Shinhan Inverse Copper is currently generating about -0.17 per unit of risk. If you would invest 460,973 in TJ media Co on October 17, 2024 and sell it today you would earn a total of 28,027 from holding TJ media Co or generate 6.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
TJ media Co vs. Shinhan Inverse Copper
Performance |
Timeline |
TJ media |
Shinhan Inverse Copper |
TJ Media and Shinhan Inverse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TJ Media and Shinhan Inverse
The main advantage of trading using opposite TJ Media and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TJ Media position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.TJ Media vs. Daeduck Electronics Co | TJ Media vs. Daejoo Electronic Materials | TJ Media vs. Sajo Seafood | TJ Media vs. Seoul Electronics Telecom |
Shinhan Inverse vs. TJ media Co | Shinhan Inverse vs. SKONEC Entertainment Co | Shinhan Inverse vs. Seoul Electronics Telecom | Shinhan Inverse vs. Samji Electronics 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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