Correlation Between TAEYANG and CKH Food
Can any of the company-specific risk be diversified away by investing in both TAEYANG and CKH Food 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 TAEYANG and CKH Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAEYANG and CKH Food Health, you can compare the effects of market volatilities on TAEYANG and CKH Food 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 TAEYANG with a short position of CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAEYANG and CKH Food.
Diversification Opportunities for TAEYANG and CKH Food
Very good diversification
The 3 months correlation between TAEYANG and CKH is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding TAEYANG and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health and TAEYANG 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 TAEYANG are associated (or correlated) with CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of TAEYANG i.e., TAEYANG and CKH Food go up and down completely randomly.
Pair Corralation between TAEYANG and CKH Food
Assuming the 90 days trading horizon TAEYANG is expected to generate 0.61 times more return on investment than CKH Food. However, TAEYANG is 1.64 times less risky than CKH Food. It trades about 0.21 of its potential returns per unit of risk. CKH Food Health is currently generating about 0.01 per unit of risk. If you would invest 598,818 in TAEYANG on October 13, 2024 and sell it today you would earn a total of 41,182 from holding TAEYANG or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
TAEYANG vs. CKH Food Health
Performance |
| Timeline |
| TAEYANG |
| CKH Food Health |
TAEYANG and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAEYANG and CKH Food
The main advantage of trading using opposite TAEYANG and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAEYANG position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| TAEYANG vs. Dongbang Transport Logistics | TAEYANG vs. Mgame Corp | TAEYANG vs. Digital Power Communications | TAEYANG vs. Iljin Display |
| CKH Food vs. PJ Metal Co | CKH Food vs. DSC Investment | CKH Food vs. DB Financial Investment | CKH Food vs. E Investment Development |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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