Correlation Between FNSTech and TJ Media
Can any of the company-specific risk be diversified away by investing in both FNSTech 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 FNSTech and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and TJ media Co, you can compare the effects of market volatilities on FNSTech 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 FNSTech with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and TJ Media.
Diversification Opportunities for FNSTech and TJ Media
Very weak diversification
The 3 months correlation between FNSTech and 032540 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech 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 FNSTech 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 FNSTech 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 FNSTech i.e., FNSTech and TJ Media go up and down completely randomly.
Pair Corralation between FNSTech and TJ Media
Assuming the 90 days trading horizon FNSTech Co is expected to generate 3.73 times more return on investment than TJ Media. However, FNSTech is 3.73 times more volatile than TJ media Co. It trades about 0.34 of its potential returns per unit of risk. TJ media Co is currently generating about 0.06 per unit of risk. If you would invest 810,000 in FNSTech Co on November 3, 2024 and sell it today you would earn a total of 244,000 from holding FNSTech Co or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNSTech Co vs. TJ media Co
Performance |
| Timeline |
| FNSTech |
| TJ media |
FNSTech and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and TJ Media
The main advantage of trading using opposite FNSTech and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech 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.| FNSTech vs. SK Chemicals Co | FNSTech vs. InnoTherapy | FNSTech vs. LG Chemicals | FNSTech vs. Echomarketing CoLtd |
| TJ Media vs. Daishin Information Communications | TJ Media vs. Woori Technology Investment | TJ Media vs. Daol Investment Securities | TJ Media vs. SBI Investment KOREA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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