Correlation Between Tamul Multimedia and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Tamul Multimedia and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and Duksan Hi.
Diversification Opportunities for Tamul Multimedia and Duksan Hi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tamul and Duksan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and Duksan Hi go up and down completely randomly.
Pair Corralation between Tamul Multimedia and Duksan Hi
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to generate 1.01 times more return on investment than Duksan Hi. However, Tamul Multimedia is 1.01 times more volatile than Duksan Hi Metal. It trades about -0.14 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.19 per unit of risk. If you would invest 769,000 in Tamul Multimedia Co on September 3, 2024 and sell it today you would lose (336,000) from holding Tamul Multimedia Co or give up 43.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Tamul Multimedia |
| Duksan Hi Metal |
Tamul Multimedia and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and Duksan Hi
The main advantage of trading using opposite Tamul Multimedia and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. LX Semicon Co | Tamul Multimedia vs. Tokai Carbon Korea | Tamul Multimedia vs. People Technology |
| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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