Correlation Between SEOJEON ELECTRIC and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both SEOJEON ELECTRIC and Tuksu Engineering 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 SEOJEON ELECTRIC and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOJEON ELECTRIC MACHINERY and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on SEOJEON ELECTRIC and Tuksu Engineering 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 SEOJEON ELECTRIC with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOJEON ELECTRIC and Tuksu Engineering.
Diversification Opportunities for SEOJEON ELECTRIC and Tuksu Engineering
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEOJEON and Tuksu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SEOJEON ELECTRIC MACHINERY and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of SEOJEON ELECTRIC i.e., SEOJEON ELECTRIC and Tuksu Engineering go up and down completely randomly.
Pair Corralation between SEOJEON ELECTRIC and Tuksu Engineering
Assuming the 90 days trading horizon SEOJEON ELECTRIC MACHINERY is expected to generate 1.6 times more return on investment than Tuksu Engineering. However, SEOJEON ELECTRIC is 1.6 times more volatile than Tuksu Engineering ConstructionLtd. It trades about 0.0 of its potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about 0.0 per unit of risk. If you would invest 646,000 in SEOJEON ELECTRIC MACHINERY on November 27, 2024 and sell it today you would lose (156,000) from holding SEOJEON ELECTRIC MACHINERY or give up 24.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOJEON ELECTRIC MACHINERY vs. Tuksu Engineering Construction
Performance |
| Timeline |
| SEOJEON ELECTRIC MAC |
| Tuksu Engineering |
SEOJEON ELECTRIC and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOJEON ELECTRIC and Tuksu Engineering
The main advantage of trading using opposite SEOJEON ELECTRIC and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOJEON ELECTRIC position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| SEOJEON ELECTRIC vs. SS TECH | SEOJEON ELECTRIC vs. Spolytech Co | SEOJEON ELECTRIC vs. MNtech Co | SEOJEON ELECTRIC vs. Leaders Technology Investment |
| Tuksu Engineering vs. Eugene Investment Securities | Tuksu Engineering vs. Daejung Chemicals Metals | Tuksu Engineering vs. SV Investment | Tuksu Engineering vs. Kukil Metal 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |