Correlation Between Taegu Broadcasting and GS Engineering
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and GS Engineering 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 Taegu Broadcasting and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and GS Engineering Construction, you can compare the effects of market volatilities on Taegu Broadcasting and GS Engineering 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 Taegu Broadcasting with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and GS Engineering.
Diversification Opportunities for Taegu Broadcasting and GS Engineering
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Taegu and 006360 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and Taegu Broadcasting 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 Taegu Broadcasting are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and GS Engineering go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and GS Engineering
Assuming the 90 days trading horizon Taegu Broadcasting is expected to under-perform the GS Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Taegu Broadcasting is 1.21 times less risky than GS Engineering. The stock trades about -0.41 of its potential returns per unit of risk. The GS Engineering Construction is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,696,000 in GS Engineering Construction on November 18, 2024 and sell it today you would earn a total of 175,000 from holding GS Engineering Construction or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taegu Broadcasting vs. GS Engineering Construction
Performance |
| Timeline |
| Taegu Broadcasting |
| GS Engineering Const |
Taegu Broadcasting and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and GS Engineering
The main advantage of trading using opposite Taegu Broadcasting and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| Taegu Broadcasting vs. Dongnam Chemical Co | Taegu Broadcasting vs. Sungmoon Electronics Co | Taegu Broadcasting vs. Korea Petro Chemical | Taegu Broadcasting vs. Jahwa Electronics Co |
| GS Engineering vs. Nh Investment And | GS Engineering vs. Golden Bridge Investment | GS Engineering vs. Sangsangin Investment Securities | GS Engineering vs. Coloray International Investment |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |