Correlation Between Tamul Multimedia and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and DONGKUK TED 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 DONGKUK TED 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 DONGKUK TED METAL, you can compare the effects of market volatilities on Tamul Multimedia and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and DONGKUK TED.
Diversification Opportunities for Tamul Multimedia and DONGKUK TED
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tamul and DONGKUK is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and DONGKUK TED go up and down completely randomly.
Pair Corralation between Tamul Multimedia and DONGKUK TED
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to under-perform the DONGKUK TED. In addition to that, Tamul Multimedia is 1.32 times more volatile than DONGKUK TED METAL. It trades about -0.14 of its total potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.04 per unit of volatility. If you would invest 700,000 in DONGKUK TED METAL on September 3, 2024 and sell it today you would lose (99,000) from holding DONGKUK TED METAL or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| Tamul Multimedia |
| DONGKUK TED METAL |
Tamul Multimedia and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and DONGKUK TED
The main advantage of trading using opposite Tamul Multimedia and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED'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 |
| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |