Correlation Between Sangsin Energy and Tamul Multimedia
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Tamul Multimedia 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 Sangsin Energy and Tamul Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Tamul Multimedia Co, you can compare the effects of market volatilities on Sangsin Energy and Tamul Multimedia 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 Sangsin Energy with a short position of Tamul Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Tamul Multimedia.
Diversification Opportunities for Sangsin Energy and Tamul Multimedia
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and Tamul is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Tamul Multimedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamul Multimedia and Sangsin Energy 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 Sangsin Energy Display are associated (or correlated) with Tamul Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamul Multimedia has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Tamul Multimedia go up and down completely randomly.
Pair Corralation between Sangsin Energy and Tamul Multimedia
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Tamul Multimedia. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.16 times less risky than Tamul Multimedia. The stock trades about -0.14 of its potential returns per unit of risk. The Tamul Multimedia Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 463,000 in Tamul Multimedia Co on October 17, 2024 and sell it today you would lose (11,000) from holding Tamul Multimedia Co or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Tamul Multimedia Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Tamul Multimedia |
Sangsin Energy and Tamul Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Tamul Multimedia
The main advantage of trading using opposite Sangsin Energy and Tamul Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Tamul Multimedia 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 Tamul Multimedia will offset losses from the drop in Tamul Multimedia's long position.| Sangsin Energy vs. SCI Information Service | Sangsin Energy vs. Alton Sports CoLtd | Sangsin Energy vs. Inzi Display CoLtd | Sangsin Energy vs. Grand Korea Leisure |
| Tamul Multimedia vs. Sangsin Energy Display | Tamul Multimedia vs. Nice Information Telecommunication | Tamul Multimedia vs. Lotte Data Communication | Tamul Multimedia vs. Automobile Pc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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