Correlation Between Shinsegae Information and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Tae Kyung 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 Shinsegae Information and Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Tae Kyung Chemical, you can compare the effects of market volatilities on Shinsegae Information and Tae Kyung 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 Shinsegae Information with a short position of Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Tae Kyung.
Diversification Opportunities for Shinsegae Information and Tae Kyung
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsegae and Tae is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical and Shinsegae Information 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 Shinsegae Information Communication are associated (or correlated) with Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Tae Kyung go up and down completely randomly.
Pair Corralation between Shinsegae Information and Tae Kyung
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Tae Kyung. In addition to that, Shinsegae Information is 1.35 times more volatile than Tae Kyung Chemical. It trades about 0.0 of its total potential returns per unit of risk. Tae Kyung Chemical is currently generating about 0.0 per unit of volatility. If you would invest 1,261,148 in Tae Kyung Chemical on November 19, 2024 and sell it today you would lose (84,148) from holding Tae Kyung Chemical or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Tae Kyung Chemical
Performance |
| Timeline |
| Shinsegae Information |
| Tae Kyung Chemical |
Shinsegae Information and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Tae Kyung
The main advantage of trading using opposite Shinsegae Information and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| Shinsegae Information vs. Hana Technology Co | Shinsegae Information vs. Hotel Shilla Co | Shinsegae Information vs. SM Entertainment Co | Shinsegae Information vs. Cuckoo Homesys Co |
| Tae Kyung vs. KPX Green Chemical | Tae Kyung vs. Jahwa Electronics Co | Tae Kyung vs. Hanil Chemical Ind | Tae Kyung vs. Lotte Chilsung Beverage |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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