Correlation Between Orbitech and TJ Media
Can any of the company-specific risk be diversified away by investing in both Orbitech 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 Orbitech and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and TJ media Co, you can compare the effects of market volatilities on Orbitech 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 Orbitech with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and TJ Media.
Diversification Opportunities for Orbitech and TJ Media
Modest diversification
The 3 months correlation between Orbitech and 032540 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Orbitech 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 Orbitech Co 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 Orbitech i.e., Orbitech and TJ Media go up and down completely randomly.
Pair Corralation between Orbitech and TJ Media
Assuming the 90 days trading horizon Orbitech Co is expected to generate 3.32 times more return on investment than TJ Media. However, Orbitech is 3.32 times more volatile than TJ media Co. It trades about 0.24 of its potential returns per unit of risk. TJ media Co is currently generating about 0.06 per unit of risk. If you would invest 196,800 in Orbitech Co on November 3, 2024 and sell it today you would earn a total of 35,200 from holding Orbitech Co or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. TJ media Co
Performance |
| Timeline |
| Orbitech |
| TJ media |
Orbitech and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and TJ Media
The main advantage of trading using opposite Orbitech and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech 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.| Orbitech vs. Genie Music | Orbitech vs. SCI Information Service | Orbitech vs. GS Retail Co | Orbitech vs. Kbi Metal Co |
| TJ Media vs. Daishin Information Communications | TJ Media vs. Woori Technology Investment | TJ Media vs. Daol Investment Securities | TJ Media vs. SBI Investment KOREA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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