Correlation Between Dong-A Steel and TSI Co
Can any of the company-specific risk be diversified away by investing in both Dong-A Steel and TSI Co 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 Dong-A Steel and TSI Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dong A Steel Technology and TSI Co, you can compare the effects of market volatilities on Dong-A Steel and TSI Co 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 Dong-A Steel with a short position of TSI Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong-A Steel and TSI Co.
Diversification Opportunities for Dong-A Steel and TSI Co
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dong-A and TSI is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Steel Technology and TSI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSI Co and Dong-A Steel 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 Dong A Steel Technology are associated (or correlated) with TSI Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSI Co has no effect on the direction of Dong-A Steel i.e., Dong-A Steel and TSI Co go up and down completely randomly.
Pair Corralation between Dong-A Steel and TSI Co
Assuming the 90 days trading horizon Dong A Steel Technology is expected to under-perform the TSI Co. In addition to that, Dong-A Steel is 1.35 times more volatile than TSI Co. It trades about -0.13 of its total potential returns per unit of risk. TSI Co is currently generating about -0.13 per unit of volatility. If you would invest 545,000 in TSI Co on September 14, 2024 and sell it today you would lose (53,000) from holding TSI Co or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Steel Technology vs. TSI Co
Performance |
| Timeline |
| Dong A Steel |
| TSI Co |
Dong-A Steel and TSI Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong-A Steel and TSI Co
The main advantage of trading using opposite Dong-A Steel and TSI Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong-A Steel position performs unexpectedly, TSI Co 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 TSI Co will offset losses from the drop in TSI Co's long position.| Dong-A Steel vs. Samsung Electronics Co | Dong-A Steel vs. Samsung Electronics Co | Dong-A Steel vs. SK Hynix | Dong-A Steel vs. POSCO Holdings |
| TSI Co vs. HyVision System | TSI Co vs. Daebo Magnetic CoLtd | TSI Co vs. Vitzro Tech Co | TSI Co vs. Solution Advanced Technology |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |