Correlation Between TES and Wonik Ips
Can any of the company-specific risk be diversified away by investing in both TES and Wonik Ips 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 TES and Wonik Ips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TES Co and Wonik Ips Co, you can compare the effects of market volatilities on TES and Wonik Ips 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 TES with a short position of Wonik Ips. Check out your portfolio center. Please also check ongoing floating volatility patterns of TES and Wonik Ips.
Diversification Opportunities for TES and Wonik Ips
Almost no diversification
The 3 months correlation between TES and Wonik is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding TES Co and Wonik Ips Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonik Ips and TES 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 TES Co are associated (or correlated) with Wonik Ips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonik Ips has no effect on the direction of TES i.e., TES and Wonik Ips go up and down completely randomly.
Pair Corralation between TES and Wonik Ips
Assuming the 90 days trading horizon TES Co is expected to generate 1.04 times more return on investment than Wonik Ips. However, TES is 1.04 times more volatile than Wonik Ips Co. It trades about 0.01 of its potential returns per unit of risk. Wonik Ips Co is currently generating about 0.0 per unit of risk. If you would invest 1,682,444 in TES Co on August 26, 2024 and sell it today you would lose (200,444) from holding TES Co or give up 11.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TES Co vs. Wonik Ips Co
Performance |
| Timeline |
| TES Co |
| Wonik Ips |
TES and Wonik Ips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TES and Wonik Ips
The main advantage of trading using opposite TES and Wonik Ips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TES position performs unexpectedly, Wonik Ips 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 Wonik Ips will offset losses from the drop in Wonik Ips' long position.| TES vs. Wonik Ips Co | TES vs. Eugene Technology CoLtd | TES vs. SFA Engineering | TES vs. Tokai Carbon Korea |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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