Correlation Between Fine Besteel and TJ Media
Can any of the company-specific risk be diversified away by investing in both Fine Besteel 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 Fine Besteel and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and TJ media Co, you can compare the effects of market volatilities on Fine Besteel 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 Fine Besteel with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and TJ Media.
Diversification Opportunities for Fine Besteel and TJ Media
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fine and 032540 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel 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 Fine Besteel 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 Fine Besteel 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 Fine Besteel i.e., Fine Besteel and TJ Media go up and down completely randomly.
Pair Corralation between Fine Besteel and TJ Media
Assuming the 90 days trading horizon Fine Besteel Co is expected to under-perform the TJ Media. In addition to that, Fine Besteel is 1.56 times more volatile than TJ media Co. It trades about -0.04 of its total potential returns per unit of risk. TJ media Co is currently generating about -0.02 per unit of volatility. If you would invest 585,031 in TJ media Co on September 3, 2024 and sell it today you would lose (114,531) from holding TJ media Co or give up 19.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. TJ media Co
Performance |
| Timeline |
| Fine Besteel |
| TJ media |
Fine Besteel and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and TJ Media
The main advantage of trading using opposite Fine Besteel and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel 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.| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
| TJ Media vs. Wave Electronics Co | TJ Media vs. Fine Besteel Co | TJ Media vs. Anam Electronics Co | TJ Media vs. Dongbu Steel 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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