Correlation Between TS Investment and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both TS Investment and Daelim 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 Daelim 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 Daelim Trading Co, you can compare the effects of market volatilities on TS Investment and Daelim 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 Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Daelim Trading.
Diversification Opportunities for TS Investment and Daelim Trading
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 246690 and Daelim is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim 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 Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of TS Investment i.e., TS Investment and Daelim Trading go up and down completely randomly.
Pair Corralation between TS Investment and Daelim Trading
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Daelim Trading. In addition to that, TS Investment is 1.03 times more volatile than Daelim Trading Co. It trades about -0.05 of its total potential returns per unit of risk. Daelim Trading Co is currently generating about -0.03 per unit of volatility. If you would invest 384,054 in Daelim Trading Co on October 24, 2024 and sell it today you would lose (126,554) from holding Daelim Trading Co or give up 32.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Daelim Trading Co
Performance |
| Timeline |
| TS Investment Corp |
| Daelim Trading |
TS Investment and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Daelim Trading
The main advantage of trading using opposite TS Investment and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Daelim 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| TS Investment vs. Daejung Chemicals Metals | TS Investment vs. Youngsin Metal Industrial | TS Investment vs. Polaris Office Corp | TS Investment vs. PJ Metal Co |
| Daelim Trading vs. TS Investment Corp | Daelim Trading vs. Atinum Investment Co | Daelim Trading vs. Wonil Special Steel | Daelim Trading vs. KTB Investment Securities |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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