Correlation Between Taegu Broadcasting and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and EBEST Investment 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 EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and EBEST Investment Securities, you can compare the effects of market volatilities on Taegu Broadcasting and EBEST Investment 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 EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and EBEST Investment.
Diversification Opportunities for Taegu Broadcasting and EBEST Investment
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taegu and EBEST is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and EBEST Investment go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and EBEST Investment
Assuming the 90 days trading horizon Taegu Broadcasting is expected to generate 1.29 times more return on investment than EBEST Investment. However, Taegu Broadcasting is 1.29 times more volatile than EBEST Investment Securities. It trades about 0.15 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about 0.0 per unit of risk. If you would invest 81,674 in Taegu Broadcasting on October 25, 2024 and sell it today you would earn a total of 5,426 from holding Taegu Broadcasting or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taegu Broadcasting vs. EBEST Investment Securities
Performance |
| Timeline |
| Taegu Broadcasting |
| EBEST Investment Sec |
Taegu Broadcasting and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and EBEST Investment
The main advantage of trading using opposite Taegu Broadcasting and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Taegu Broadcasting vs. Korea Petro Chemical | Taegu Broadcasting vs. SH Energy Chemical | Taegu Broadcasting vs. PLAYWITH | Taegu Broadcasting vs. JC Chemical Co |
| EBEST Investment vs. Hyundai Home Shopping | EBEST Investment vs. Daiyang Metal Co | EBEST Investment vs. Kukil Metal Co | EBEST Investment vs. Duksan Hi Metal |
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.
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