Correlation Between T3 Entertainment and Sangshin Electronics
Can any of the company-specific risk be diversified away by investing in both T3 Entertainment and Sangshin Electronics 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 Sangshin Electronics 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 Sangshin Electronics Co, you can compare the effects of market volatilities on T3 Entertainment and Sangshin Electronics 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 Sangshin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of T3 Entertainment and Sangshin Electronics.
Diversification Opportunities for T3 Entertainment and Sangshin Electronics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 204610 and Sangshin is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding T3 Entertainment Co and Sangshin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangshin Electronics 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 Sangshin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangshin Electronics has no effect on the direction of T3 Entertainment i.e., T3 Entertainment and Sangshin Electronics go up and down completely randomly.
Pair Corralation between T3 Entertainment and Sangshin Electronics
Assuming the 90 days trading horizon T3 Entertainment Co is expected to generate 1.24 times more return on investment than Sangshin Electronics. However, T3 Entertainment is 1.24 times more volatile than Sangshin Electronics Co. It trades about 0.18 of its potential returns per unit of risk. Sangshin Electronics Co is currently generating about -0.13 per unit of risk. If you would invest 132,000 in T3 Entertainment Co on October 14, 2024 and sell it today you would earn a total of 37,500 from holding T3 Entertainment Co or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T3 Entertainment Co vs. Sangshin Electronics Co
Performance |
| Timeline |
| T3 Entertainment |
| Sangshin Electronics |
T3 Entertainment and Sangshin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T3 Entertainment and Sangshin Electronics
The main advantage of trading using opposite T3 Entertainment and Sangshin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T3 Entertainment position performs unexpectedly, Sangshin Electronics 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 Sangshin Electronics will offset losses from the drop in Sangshin Electronics' long position.| T3 Entertainment vs. Nice Information Telecommunication | T3 Entertainment vs. Hyosung Advanced Materials | T3 Entertainment vs. LS Materials | T3 Entertainment vs. RF Materials Co |
| Sangshin Electronics vs. YG Entertainment | Sangshin Electronics vs. T3 Entertainment Co | Sangshin Electronics vs. Dongkuk Structures Construction | Sangshin Electronics vs. Seoam Machinery Industry |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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