Correlation Between TS Investment and GS Engineering
Can any of the company-specific risk be diversified away by investing in both TS Investment and GS 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 TS Investment and GS Engineering 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 GS Engineering Construction, you can compare the effects of market volatilities on TS Investment and GS 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 TS Investment with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and GS Engineering.
Diversification Opportunities for TS Investment and GS Engineering
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 246690 and 006360 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const 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 GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of TS Investment i.e., TS Investment and GS Engineering go up and down completely randomly.
Pair Corralation between TS Investment and GS Engineering
Assuming the 90 days trading horizon TS Investment Corp is expected to generate 3.57 times more return on investment than GS Engineering. However, TS Investment is 3.57 times more volatile than GS Engineering Construction. It trades about 0.11 of its potential returns per unit of risk. GS Engineering Construction is currently generating about -0.01 per unit of risk. If you would invest 90,300 in TS Investment Corp on October 11, 2024 and sell it today you would earn a total of 9,000 from holding TS Investment Corp or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. GS Engineering Construction
Performance |
| Timeline |
| TS Investment Corp |
| GS Engineering Const |
TS Investment and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and GS Engineering
The main advantage of trading using opposite TS Investment and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, GS 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| TS Investment vs. Pureun Mutual Savings | TS Investment vs. CG Hi Tech | TS Investment vs. LG Display Co | TS Investment vs. Coloray International Investment |
| GS Engineering vs. Daishin Information Communications | GS Engineering vs. Duksan Hi Metal | GS Engineering vs. Seoyon Topmetal Co | GS Engineering vs. Display Tech 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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