Correlation Between Korea Gas and TS Investment
Can any of the company-specific risk be diversified away by investing in both Korea Gas and TS 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 Korea Gas and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Gas and TS Investment Corp, you can compare the effects of market volatilities on Korea Gas and TS 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 Korea Gas with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Gas and TS Investment.
Diversification Opportunities for Korea Gas and TS Investment
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Korea and 246690 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Korea Gas and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp and Korea Gas 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 Korea Gas are associated (or correlated) with TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Korea Gas i.e., Korea Gas and TS Investment go up and down completely randomly.
Pair Corralation between Korea Gas and TS Investment
Assuming the 90 days trading horizon Korea Gas is expected to generate 2.42 times more return on investment than TS Investment. However, Korea Gas is 2.42 times more volatile than TS Investment Corp. It trades about 0.07 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.09 per unit of risk. If you would invest 2,570,000 in Korea Gas on September 4, 2024 and sell it today you would earn a total of 1,510,000 from holding Korea Gas or generate 58.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Gas vs. TS Investment Corp
Performance |
| Timeline |
| Korea Gas |
| TS Investment Corp |
Korea Gas and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Gas and TS Investment
The main advantage of trading using opposite Korea Gas and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Gas position performs unexpectedly, TS 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 TS Investment will offset losses from the drop in TS Investment's long position.| Korea Gas vs. TS Investment Corp | Korea Gas vs. Finebesteel | Korea Gas vs. DONGKUK STEEL MILL | Korea Gas vs. Daelim Trading Co |
| TS Investment vs. Samsung Electronics Co | TS Investment vs. Samsung Electronics Co | TS Investment vs. LG Energy Solution | TS Investment vs. SK Hynix |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |