Correlation Between Tway Air and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both Tway Air and SeAH Bestee 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 Tway Air and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tway Air Co and SeAH Bestee, you can compare the effects of market volatilities on Tway Air and SeAH Bestee 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 Tway Air with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tway Air and SeAH Bestee.
Diversification Opportunities for Tway Air and SeAH Bestee
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tway and SeAH is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tway Air Co and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and Tway Air 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 Tway Air Co are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of Tway Air i.e., Tway Air and SeAH Bestee go up and down completely randomly.
Pair Corralation between Tway Air and SeAH Bestee
Assuming the 90 days trading horizon Tway Air Co is expected to generate 3.45 times more return on investment than SeAH Bestee. However, Tway Air is 3.45 times more volatile than SeAH Bestee. It trades about 0.52 of its potential returns per unit of risk. SeAH Bestee is currently generating about -0.02 per unit of risk. If you would invest 246,500 in Tway Air Co on November 3, 2024 and sell it today you would earn a total of 143,500 from holding Tway Air Co or generate 58.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tway Air Co vs. SeAH Bestee
Performance |
| Timeline |
| Tway Air |
| SeAH Bestee |
Tway Air and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tway Air and SeAH Bestee
The main advantage of trading using opposite Tway Air and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tway Air position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| Tway Air vs. Homecast CoLtd | Tway Air vs. Youngbo Chemical Co | Tway Air vs. Kg Chemical | Tway Air vs. Kyung In Synthetic Corp |
| SeAH Bestee vs. PLAYWITH | SeAH Bestee vs. Inzi Display CoLtd | SeAH Bestee vs. Coloray International Investment | SeAH Bestee vs. Nice Information Telecommunication |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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