Correlation Between Tokai Carbon and CU Tech
Can any of the company-specific risk be diversified away by investing in both Tokai Carbon and CU Tech 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 Tokai Carbon and CU Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokai Carbon Korea and CU Tech Corp, you can compare the effects of market volatilities on Tokai Carbon and CU Tech 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 Tokai Carbon with a short position of CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokai Carbon and CU Tech.
Diversification Opportunities for Tokai Carbon and CU Tech
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tokai and 376290 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tokai Carbon Korea and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech Corp and Tokai Carbon 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 Tokai Carbon Korea are associated (or correlated) with CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Tokai Carbon i.e., Tokai Carbon and CU Tech go up and down completely randomly.
Pair Corralation between Tokai Carbon and CU Tech
Assuming the 90 days trading horizon Tokai Carbon Korea is expected to under-perform the CU Tech. In addition to that, Tokai Carbon is 2.58 times more volatile than CU Tech Corp. It trades about -0.14 of its total potential returns per unit of risk. CU Tech Corp is currently generating about -0.08 per unit of volatility. If you would invest 297,000 in CU Tech Corp on November 5, 2024 and sell it today you would lose (3,500) from holding CU Tech Corp or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokai Carbon Korea vs. CU Tech Corp
Performance |
| Timeline |
| Tokai Carbon Korea |
| CU Tech Corp |
Tokai Carbon and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokai Carbon and CU Tech
The main advantage of trading using opposite Tokai Carbon and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokai Carbon position performs unexpectedly, CU Tech 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 CU Tech will offset losses from the drop in CU Tech's long position.| Tokai Carbon vs. LEENO Industrial | Tokai Carbon vs. Wonik Ips Co | Tokai Carbon vs. Dongjin Semichem Co | Tokai Carbon vs. Hana Materials |
| CU Tech vs. Aprogen Healthcare Games | CU Tech vs. Infinitt Healthcare Co | CU Tech vs. Stic Investments | CU Tech vs. Woori Technology Investment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |