Correlation Between Asia Technology and TS Investment
Can any of the company-specific risk be diversified away by investing in both Asia Technology 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 Asia Technology and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Technology Co and TS Investment Corp, you can compare the effects of market volatilities on Asia Technology 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 Asia Technology with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Technology and TS Investment.
Diversification Opportunities for Asia Technology and TS Investment
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asia and 246690 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asia Technology Co 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 Asia Technology 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 Asia Technology Co 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 Asia Technology i.e., Asia Technology and TS Investment go up and down completely randomly.
Pair Corralation between Asia Technology and TS Investment
Assuming the 90 days trading horizon Asia Technology Co is expected to generate 0.79 times more return on investment than TS Investment. However, Asia Technology Co is 1.26 times less risky than TS Investment. It trades about -0.03 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.05 per unit of risk. If you would invest 270,617 in Asia Technology Co on October 29, 2024 and sell it today you would lose (68,617) from holding Asia Technology Co or give up 25.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Technology Co vs. TS Investment Corp
Performance |
| Timeline |
| Asia Technology |
| TS Investment Corp |
Asia Technology and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Technology and TS Investment
The main advantage of trading using opposite Asia Technology and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Technology 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.| Asia Technology vs. Kukdong Oil Chemicals | Asia Technology vs. Tuksu Engineering ConstructionLtd | Asia Technology vs. Namhae Chemical | Asia Technology vs. Kg Chemical |
| TS Investment vs. Daeduck Electronics Co | TS Investment vs. PJ Electronics Co | TS Investment vs. DAEDUCK ELECTRONICS CoLtd | TS Investment vs. BNK 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 CEOs Directory module to screen CEOs from public companies around the world.
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