Correlation Between Korea New and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Korea New and Tuksu Engineering 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 Korea New and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Korea New and Tuksu Engineering 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 Korea New with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Tuksu Engineering.
Diversification Opportunities for Korea New and Tuksu Engineering
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korea and Tuksu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and Korea New 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 Korea New Network are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Korea New i.e., Korea New and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Korea New and Tuksu Engineering
Assuming the 90 days trading horizon Korea New Network is expected to generate 0.73 times more return on investment than Tuksu Engineering. However, Korea New Network is 1.36 times less risky than Tuksu Engineering. It trades about 0.0 of its potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about -0.1 per unit of risk. If you would invest 79,600 in Korea New Network on December 1, 2024 and sell it today you would lose (200.00) from holding Korea New Network or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea New Network vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Korea New Network |
| Tuksu Engineering |
Korea New and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Tuksu Engineering
The main advantage of trading using opposite Korea New and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Korea New vs. Mirai Semiconductors Co | Korea New vs. Cloud Air CoLtd | Korea New vs. Aprogen Healthcare Games | Korea New vs. Jin Air Co |
| Tuksu Engineering vs. Sejong Industrial | Tuksu Engineering vs. Haesung Industrial Co | Tuksu Engineering vs. Samwha Electronics Co | Tuksu Engineering vs. LEENO Industrial |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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