Correlation Between Taegu Broadcasting and KG Eco
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and KG Eco 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 KG Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and KG Eco Technology, you can compare the effects of market volatilities on Taegu Broadcasting and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and KG Eco.
Diversification Opportunities for Taegu Broadcasting and KG Eco
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taegu and 151860 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and KG Eco go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and KG Eco
Assuming the 90 days trading horizon Taegu Broadcasting is expected to under-perform the KG Eco. But the stock apears to be less risky and, when comparing its historical volatility, Taegu Broadcasting is 1.18 times less risky than KG Eco. The stock trades about -0.09 of its potential returns per unit of risk. The KG Eco Technology is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 453,159 in KG Eco Technology on October 11, 2024 and sell it today you would earn a total of 61,841 from holding KG Eco Technology or generate 13.65% 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. KG Eco Technology
Performance |
| Timeline |
| Taegu Broadcasting |
| KG Eco Technology |
Taegu Broadcasting and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and KG Eco
The main advantage of trading using opposite Taegu Broadcasting and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco's long position.| Taegu Broadcasting vs. Samyang Foods Co | Taegu Broadcasting vs. Haitai Confectionery Foods | Taegu Broadcasting vs. Jinro Distillers Co | Taegu Broadcasting vs. CJ Seafood Corp |
| KG Eco vs. SK Telecom Co | KG Eco vs. Kisan Telecom Co | KG Eco vs. Sungmoon Electronics Co | KG Eco vs. Taegu Broadcasting |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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