Correlation Between Sewoon Medical and TJ Media
Can any of the company-specific risk be diversified away by investing in both Sewoon Medical and TJ Media 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 Sewoon Medical and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sewoon Medical Co and TJ media Co, you can compare the effects of market volatilities on Sewoon Medical and TJ Media 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 Sewoon Medical with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sewoon Medical and TJ Media.
Diversification Opportunities for Sewoon Medical and TJ Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sewoon and 032540 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sewoon Medical Co and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Sewoon Medical 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 Sewoon Medical Co are associated (or correlated) with TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Sewoon Medical i.e., Sewoon Medical and TJ Media go up and down completely randomly.
Pair Corralation between Sewoon Medical and TJ Media
Assuming the 90 days trading horizon Sewoon Medical Co is expected to generate 1.52 times more return on investment than TJ Media. However, Sewoon Medical is 1.52 times more volatile than TJ media Co. It trades about -0.18 of its potential returns per unit of risk. TJ media Co is currently generating about -0.42 per unit of risk. If you would invest 272,000 in Sewoon Medical Co on September 1, 2024 and sell it today you would lose (18,000) from holding Sewoon Medical Co or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sewoon Medical Co vs. TJ media Co
Performance |
| Timeline |
| Sewoon Medical |
| TJ media |
Sewoon Medical and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sewoon Medical and TJ Media
The main advantage of trading using opposite Sewoon Medical and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sewoon Medical position performs unexpectedly, TJ Media 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 TJ Media will offset losses from the drop in TJ Media's long position.| Sewoon Medical vs. Infinitt Healthcare Co | Sewoon Medical vs. PLAYWITH | Sewoon Medical vs. CKH Food Health | Sewoon Medical vs. Samhwa Paint Industrial |
| TJ Media vs. LG Display | TJ Media vs. Hyundai Motor | TJ Media vs. Hyundai Motor Co | TJ Media vs. Hyundai Motor Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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