Correlation Between GemVaxKAEL CoLtd and TK Chemical
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and TK Chemical 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 GemVaxKAEL CoLtd and TK Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and TK Chemical, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and TK Chemical 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 GemVaxKAEL CoLtd with a short position of TK Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and TK Chemical.
Diversification Opportunities for GemVaxKAEL CoLtd and TK Chemical
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GemVaxKAEL and 104480 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and TK Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TK Chemical and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd are associated (or correlated) with TK Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TK Chemical has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and TK Chemical go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and TK Chemical
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 1.37 times more return on investment than TK Chemical. However, GemVaxKAEL CoLtd is 1.37 times more volatile than TK Chemical. It trades about 0.06 of its potential returns per unit of risk. TK Chemical is currently generating about -0.03 per unit of risk. If you would invest 1,526,000 in GemVaxKAEL CoLtd on November 27, 2024 and sell it today you would earn a total of 1,949,000 from holding GemVaxKAEL CoLtd or generate 127.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. TK Chemical
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| TK Chemical |
GemVaxKAEL CoLtd and TK Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and TK Chemical
The main advantage of trading using opposite GemVaxKAEL CoLtd and TK Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, TK Chemical 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 TK Chemical will offset losses from the drop in TK Chemical's long position.| GemVaxKAEL CoLtd vs. Hwangkum Steel Technology | GemVaxKAEL CoLtd vs. Echomarketing CoLtd | GemVaxKAEL CoLtd vs. Leaders Technology Investment | GemVaxKAEL CoLtd vs. SV Investment |
| TK Chemical vs. T3 Entertainment Co | TK Chemical vs. MEDIANA CoLtd | TK Chemical vs. Barunson Entertainment Arts | TK Chemical vs. Pan Entertainment 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |