Correlation Between Tamul Multimedia and Cytogen
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on Tamul Multimedia and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and Cytogen.
Diversification Opportunities for Tamul Multimedia and Cytogen
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tamul and Cytogen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and Cytogen go up and down completely randomly.
Pair Corralation between Tamul Multimedia and Cytogen
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to generate 0.5 times more return on investment than Cytogen. However, Tamul Multimedia Co is 1.99 times less risky than Cytogen. It trades about -0.03 of its potential returns per unit of risk. Cytogen is currently generating about -0.32 per unit of risk. If you would invest 413,500 in Tamul Multimedia Co on September 12, 2024 and sell it today you would lose (11,500) from holding Tamul Multimedia Co or give up 2.78% 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. Cytogen
Performance |
| Timeline |
| Tamul Multimedia |
| Cytogen |
Tamul Multimedia and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and Cytogen
The main advantage of trading using opposite Tamul Multimedia and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. People Technology | Tamul Multimedia vs. Hana Materials | Tamul Multimedia vs. SIMMTECH Co |
| Cytogen vs. YG Entertainment | Cytogen vs. Tamul Multimedia Co | Cytogen vs. J Steel Co | Cytogen vs. Husteel |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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