Correlation Between T3 Entertainment and STI
Can any of the company-specific risk be diversified away by investing in both T3 Entertainment and STI 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 T3 Entertainment and STI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T3 Entertainment Co and STI Co, you can compare the effects of market volatilities on T3 Entertainment and STI 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 T3 Entertainment with a short position of STI. Check out your portfolio center. Please also check ongoing floating volatility patterns of T3 Entertainment and STI.
Diversification Opportunities for T3 Entertainment and STI
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 204610 and STI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding T3 Entertainment Co and STI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Co and T3 Entertainment 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 T3 Entertainment Co are associated (or correlated) with STI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Co has no effect on the direction of T3 Entertainment i.e., T3 Entertainment and STI go up and down completely randomly.
Pair Corralation between T3 Entertainment and STI
Assuming the 90 days trading horizon T3 Entertainment is expected to generate 3.22 times less return on investment than STI. But when comparing it to its historical volatility, T3 Entertainment Co is 1.61 times less risky than STI. It trades about 0.02 of its potential returns per unit of risk. STI Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,184,941 in STI Co on September 14, 2024 and sell it today you would earn a total of 367,059 from holding STI Co or generate 30.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
T3 Entertainment Co vs. STI Co
Performance |
| Timeline |
| T3 Entertainment |
| STI Co |
T3 Entertainment and STI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T3 Entertainment and STI
The main advantage of trading using opposite T3 Entertainment and STI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T3 Entertainment position performs unexpectedly, STI 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 STI will offset losses from the drop in STI's long position.| T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. LG Energy Solution | T3 Entertainment vs. SK Hynix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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