Correlation Between DoubleU Games and TS Investment
Can any of the company-specific risk be diversified away by investing in both DoubleU Games and TS Investment 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 DoubleU Games and TS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleU Games Co and TS Investment Corp, you can compare the effects of market volatilities on DoubleU Games and TS Investment 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 DoubleU Games with a short position of TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleU Games and TS Investment.
Diversification Opportunities for DoubleU Games and TS Investment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DoubleU and 246690 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DoubleU Games Co and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp and DoubleU Games 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 DoubleU Games Co are associated (or correlated) with TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of DoubleU Games i.e., DoubleU Games and TS Investment go up and down completely randomly.
Pair Corralation between DoubleU Games and TS Investment
Assuming the 90 days trading horizon DoubleU Games Co is expected to generate 0.82 times more return on investment than TS Investment. However, DoubleU Games Co is 1.23 times less risky than TS Investment. It trades about -0.18 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.22 per unit of risk. If you would invest 5,180,000 in DoubleU Games Co on November 8, 2024 and sell it today you would lose (260,000) from holding DoubleU Games Co or give up 5.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
DoubleU Games Co vs. TS Investment Corp
Performance |
| Timeline |
| DoubleU Games |
| TS Investment Corp |
DoubleU Games and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DoubleU Games and TS Investment
The main advantage of trading using opposite DoubleU Games and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleU Games position performs unexpectedly, TS Investment 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 TS Investment will offset losses from the drop in TS Investment's long position.| DoubleU Games vs. Dongkuk Structures Construction | DoubleU Games vs. ENF Technology Co | DoubleU Games vs. Digital Imaging Technology | DoubleU Games vs. HB Technology TD |
| TS Investment vs. Kolon Plastics | TS Investment vs. Daejoo Electronic Materials | TS Investment vs. INNOX Advanced Materials | TS Investment vs. Cloud Air CoLtd |
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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