Correlation Between Taegu Broadcasting and Genic
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and Genic 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 Genic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and Genic Co, you can compare the effects of market volatilities on Taegu Broadcasting and Genic 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 Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and Genic.
Diversification Opportunities for Taegu Broadcasting and Genic
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taegu and Genic is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic 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 Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and Genic go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and Genic
Assuming the 90 days trading horizon Taegu Broadcasting is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, Taegu Broadcasting is 2.65 times less risky than Genic. The stock trades about -0.2 of its potential returns per unit of risk. The Genic Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,953,000 in Genic Co on October 16, 2024 and sell it today you would earn a total of 647,000 from holding Genic Co or generate 33.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taegu Broadcasting vs. Genic Co
Performance |
| Timeline |
| Taegu Broadcasting |
| Genic |
Taegu Broadcasting and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and Genic
The main advantage of trading using opposite Taegu Broadcasting and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| Taegu Broadcasting vs. Sam Yang Foods | Taegu Broadcasting vs. Nh Investment And | Taegu Broadcasting vs. DSC Investment | Taegu Broadcasting vs. Shinsegae Food |
| Genic vs. Aprogen Healthcare Games | Genic vs. Seoul Food Industrial | Genic vs. Kakao Games Corp | Genic vs. Alton Sports CoLtd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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