Correlation Between TS Investment and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both TS Investment and Samyung Trading 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 TS Investment and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TS Investment Corp and Samyung Trading Co, you can compare the effects of market volatilities on TS Investment and Samyung Trading 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 TS Investment with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Samyung Trading.
Diversification Opportunities for TS Investment and Samyung Trading
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 246690 and Samyung is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and TS Investment 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 TS Investment Corp are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of TS Investment i.e., TS Investment and Samyung Trading go up and down completely randomly.
Pair Corralation between TS Investment and Samyung Trading
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Samyung Trading. In addition to that, TS Investment is 1.47 times more volatile than Samyung Trading Co. It trades about -0.11 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.0 per unit of volatility. If you would invest 1,290,000 in Samyung Trading Co on August 28, 2024 and sell it today you would lose (2,000) from holding Samyung Trading Co or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Samyung Trading Co
Performance |
| Timeline |
| TS Investment Corp |
| Samyung Trading |
TS Investment and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Samyung Trading
The main advantage of trading using opposite TS Investment and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| TS Investment vs. Sejong Telecom | TS Investment vs. Sunny Electronics Corp | TS Investment vs. Jeju Beer Co | TS Investment vs. Cuckoo Electronics Co |
| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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