Correlation Between Tamul Multimedia and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and Stic Investments 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 Tamul Multimedia and Stic Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamul Multimedia Co and Stic Investments, you can compare the effects of market volatilities on Tamul Multimedia and Stic Investments 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 Tamul Multimedia with a short position of Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and Stic Investments.
Diversification Opportunities for Tamul Multimedia and Stic Investments
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tamul and Stic is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments and Tamul Multimedia 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 Tamul Multimedia Co are associated (or correlated) with Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and Stic Investments go up and down completely randomly.
Pair Corralation between Tamul Multimedia and Stic Investments
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to under-perform the Stic Investments. In addition to that, Tamul Multimedia is 1.59 times more volatile than Stic Investments. It trades about -0.04 of its total potential returns per unit of risk. Stic Investments is currently generating about -0.01 per unit of volatility. If you would invest 828,000 in Stic Investments on October 30, 2024 and sell it today you would lose (10,000) from holding Stic Investments or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. Stic Investments
Performance |
| Timeline |
| Tamul Multimedia |
| Stic Investments |
Tamul Multimedia and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and Stic Investments
The main advantage of trading using opposite Tamul Multimedia and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Tamul Multimedia vs. SH Energy Chemical | Tamul Multimedia vs. Youl Chon Chemical | Tamul Multimedia vs. Kg Chemical | Tamul Multimedia vs. PJ Metal Co |
| Stic Investments vs. Pureun Mutual Savings | Stic Investments vs. LG Household Healthcare | Stic Investments vs. Daewon Media Co | Stic Investments vs. Daol Investment Securities |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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