Correlation Between Kaonmedia and TJ Media
Can any of the company-specific risk be diversified away by investing in both Kaonmedia 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 Kaonmedia and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and TJ media Co, you can compare the effects of market volatilities on Kaonmedia 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 Kaonmedia with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and TJ Media.
Diversification Opportunities for Kaonmedia and TJ Media
Poor diversification
The 3 months correlation between Kaonmedia and 032540 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia 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 Kaonmedia 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 Kaonmedia 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 Kaonmedia i.e., Kaonmedia and TJ Media go up and down completely randomly.
Pair Corralation between Kaonmedia and TJ Media
Assuming the 90 days trading horizon Kaonmedia Co is expected to generate 3.26 times more return on investment than TJ Media. However, Kaonmedia is 3.26 times more volatile than TJ media Co. It trades about -0.07 of its potential returns per unit of risk. TJ media Co is currently generating about -0.36 per unit of risk. If you would invest 359,000 in Kaonmedia Co on August 27, 2024 and sell it today you would lose (24,000) from holding Kaonmedia Co or give up 6.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. TJ media Co
Performance |
| Timeline |
| Kaonmedia |
| TJ media |
Kaonmedia and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and TJ Media
The main advantage of trading using opposite Kaonmedia and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia 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.| Kaonmedia vs. Korea Real Estate | Kaonmedia vs. Korea Ratings Co | Kaonmedia vs. IQuest Co | Kaonmedia vs. Wonbang Tech Co |
| TJ Media vs. Daehan Steel | TJ Media vs. Samyang Foods Co | TJ Media vs. Miwon Chemical | TJ Media vs. Jinro Distillers 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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