Correlation Between RFTech and TJ Media
Can any of the company-specific risk be diversified away by investing in both RFTech 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 RFTech and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RFTech Co and TJ media Co, you can compare the effects of market volatilities on RFTech 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 RFTech with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of RFTech and TJ Media.
Diversification Opportunities for RFTech and TJ Media
Very good diversification
The 3 months correlation between RFTech and 032540 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding RFTech Co and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and RFTech 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 RFTech Co 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 RFTech i.e., RFTech and TJ Media go up and down completely randomly.
Pair Corralation between RFTech and TJ Media
Assuming the 90 days trading horizon RFTech Co is expected to under-perform the TJ Media. But the stock apears to be less risky and, when comparing its historical volatility, RFTech Co is 1.0 times less risky than TJ Media. The stock trades about -0.03 of its potential returns per unit of risk. The TJ media Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 601,746 in TJ media Co on September 12, 2024 and sell it today you would lose (106,746) from holding TJ media Co or give up 17.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RFTech Co vs. TJ media Co
Performance |
| Timeline |
| RFTech |
| TJ media |
RFTech and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RFTech and TJ Media
The main advantage of trading using opposite RFTech and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RFTech 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.| RFTech vs. Korea New Network | RFTech vs. Solution Advanced Technology | RFTech vs. Busan Industrial Co | RFTech vs. Busan Ind |
| TJ Media vs. RFTech Co | TJ Media vs. Nh Investment And | TJ Media vs. Stic Investments | TJ Media vs. PH Tech Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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