Correlation Between LockLock and TJ Media
Can any of the company-specific risk be diversified away by investing in both LockLock 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 LockLock and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LockLock Co and TJ media Co, you can compare the effects of market volatilities on LockLock 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 LockLock with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LockLock and TJ Media.
Diversification Opportunities for LockLock and TJ Media
Good diversification
The 3 months correlation between LockLock and 032540 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding LockLock 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 LockLock 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 LockLock 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 LockLock i.e., LockLock and TJ Media go up and down completely randomly.
Pair Corralation between LockLock and TJ Media
Assuming the 90 days trading horizon LockLock Co is expected to generate 0.05 times more return on investment than TJ Media. However, LockLock Co is 19.62 times less risky than TJ Media. It trades about -0.07 of its potential returns per unit of risk. TJ media Co is currently generating about -0.05 per unit of risk. If you would invest 867,000 in LockLock Co on September 13, 2024 and sell it today you would lose (1,000.00) from holding LockLock Co or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
LockLock Co vs. TJ media Co
Performance |
| Timeline |
| LockLock |
| TJ media |
LockLock and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LockLock and TJ Media
The main advantage of trading using opposite LockLock and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LockLock 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.| LockLock vs. Dongbu Steel Co | LockLock vs. LG Display Co | LockLock vs. Moonbae Steel | LockLock vs. Wonil Special Steel |
| TJ Media vs. Daou Data Corp | TJ Media vs. Solution Advanced Technology | TJ Media vs. Busan Industrial Co | TJ Media vs. Busan Ind |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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