Correlation Between Actoz Soft and TJ Media
Can any of the company-specific risk be diversified away by investing in both Actoz Soft 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 Actoz Soft and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actoz Soft CoLtd and TJ media Co, you can compare the effects of market volatilities on Actoz Soft 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 Actoz Soft with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actoz Soft and TJ Media.
Diversification Opportunities for Actoz Soft and TJ Media
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Actoz and 032540 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Actoz Soft CoLtd and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Actoz Soft 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 Actoz Soft CoLtd 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 Actoz Soft i.e., Actoz Soft and TJ Media go up and down completely randomly.
Pair Corralation between Actoz Soft and TJ Media
Assuming the 90 days trading horizon Actoz Soft CoLtd is expected to generate 2.04 times more return on investment than TJ Media. However, Actoz Soft is 2.04 times more volatile than TJ media Co. It trades about 0.01 of its potential returns per unit of risk. TJ media Co is currently generating about -0.01 per unit of risk. If you would invest 755,000 in Actoz Soft CoLtd on September 13, 2024 and sell it today you would lose (72,000) from holding Actoz Soft CoLtd or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Actoz Soft CoLtd vs. TJ media Co
Performance |
| Timeline |
| Actoz Soft CoLtd |
| TJ media |
Actoz Soft and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actoz Soft and TJ Media
The main advantage of trading using opposite Actoz Soft and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actoz Soft 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.| Actoz Soft vs. TJ media Co | Actoz Soft vs. Ssangyong Information Communication | Actoz Soft vs. T3 Entertainment Co | Actoz Soft vs. Daishin Information Communications |
| TJ Media vs. Insung Information Co | TJ Media vs. PLAYWITH | TJ Media vs. DataSolution | TJ Media vs. Korea Information Engineering |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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