Correlation Between Ecoplastic and TJ Media
Can any of the company-specific risk be diversified away by investing in both Ecoplastic and TJ Media 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 Ecoplastic and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecoplastic and TJ media Co, you can compare the effects of market volatilities on Ecoplastic and TJ Media 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 Ecoplastic with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecoplastic and TJ Media.
Diversification Opportunities for Ecoplastic and TJ Media
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ecoplastic and 032540 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ecoplastic and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Ecoplastic 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 Ecoplastic are associated (or correlated) with TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Ecoplastic i.e., Ecoplastic and TJ Media go up and down completely randomly.
Pair Corralation between Ecoplastic and TJ Media
Assuming the 90 days trading horizon Ecoplastic is expected to generate 1.8 times less return on investment than TJ Media. In addition to that, Ecoplastic is 1.03 times more volatile than TJ media Co. It trades about 0.13 of its total potential returns per unit of risk. TJ media Co is currently generating about 0.25 per unit of volatility. If you would invest 453,500 in TJ media Co on October 25, 2024 and sell it today you would earn a total of 29,500 from holding TJ media Co or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecoplastic vs. TJ media Co
Performance |
| Timeline |
| Ecoplastic |
| TJ media |
Ecoplastic and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecoplastic and TJ Media
The main advantage of trading using opposite Ecoplastic and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecoplastic position performs unexpectedly, TJ Media 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 TJ Media will offset losses from the drop in TJ Media's long position.| Ecoplastic vs. Samsung Electronics Co | Ecoplastic vs. Samsung Electronics Co | Ecoplastic vs. KB Financial Group | Ecoplastic vs. Shinhan Financial Group |
| TJ Media vs. Samsung Electronics Co | TJ Media vs. Samsung Electronics Co | TJ Media vs. KB Financial Group | TJ Media vs. Shinhan Financial Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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