Correlation Between Genie Music and Tamul Multimedia
Can any of the company-specific risk be diversified away by investing in both Genie Music and Tamul Multimedia 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 Genie Music and Tamul Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Tamul Multimedia Co, you can compare the effects of market volatilities on Genie Music and Tamul Multimedia 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 Genie Music with a short position of Tamul Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Tamul Multimedia.
Diversification Opportunities for Genie Music and Tamul Multimedia
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genie and Tamul is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Tamul Multimedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamul Multimedia and Genie Music 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 Genie Music are associated (or correlated) with Tamul Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamul Multimedia has no effect on the direction of Genie Music i.e., Genie Music and Tamul Multimedia go up and down completely randomly.
Pair Corralation between Genie Music and Tamul Multimedia
Assuming the 90 days trading horizon Genie Music is expected to under-perform the Tamul Multimedia. In addition to that, Genie Music is 1.01 times more volatile than Tamul Multimedia Co. It trades about -0.1 of its total potential returns per unit of risk. Tamul Multimedia Co is currently generating about 0.05 per unit of volatility. If you would invest 421,000 in Tamul Multimedia Co on August 31, 2024 and sell it today you would earn a total of 8,000 from holding Tamul Multimedia Co or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. Tamul Multimedia Co
Performance |
| Timeline |
| Genie Music |
| Tamul Multimedia |
Genie Music and Tamul Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Tamul Multimedia
The main advantage of trading using opposite Genie Music and Tamul Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Tamul Multimedia 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 Tamul Multimedia will offset losses from the drop in Tamul Multimedia's long position.| Genie Music vs. AfreecaTV Co | Genie Music vs. Seegene | Genie Music vs. SS TECH | Genie Music vs. Busan Industrial Co |
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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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