Correlation Between TS Investment and Kukdo Chemical
Can any of the company-specific risk be diversified away by investing in both TS Investment and Kukdo Chemical 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 Kukdo Chemical 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 Kukdo Chemical Co, you can compare the effects of market volatilities on TS Investment and Kukdo Chemical 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 Kukdo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Kukdo Chemical.
Diversification Opportunities for TS Investment and Kukdo Chemical
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 246690 and Kukdo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Kukdo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdo Chemical 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 Kukdo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdo Chemical has no effect on the direction of TS Investment i.e., TS Investment and Kukdo Chemical go up and down completely randomly.
Pair Corralation between TS Investment and Kukdo Chemical
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Kukdo Chemical. In addition to that, TS Investment is 1.6 times more volatile than Kukdo Chemical Co. It trades about -0.09 of its total potential returns per unit of risk. Kukdo Chemical Co is currently generating about 0.25 per unit of volatility. If you would invest 2,750,000 in Kukdo Chemical Co on October 12, 2024 and sell it today you would earn a total of 350,000 from holding Kukdo Chemical Co or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Kukdo Chemical Co
Performance |
| Timeline |
| TS Investment Corp |
| Kukdo Chemical |
TS Investment and Kukdo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Kukdo Chemical
The main advantage of trading using opposite TS Investment and Kukdo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Kukdo Chemical 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 Kukdo Chemical will offset losses from the drop in Kukdo Chemical's long position.| TS Investment vs. Daiyang Metal Co | TS Investment vs. Jeju Beer Co | TS Investment vs. ENF Technology Co | TS Investment vs. MetaLabs Co |
| Kukdo Chemical vs. Worldex Industry Trading | Kukdo Chemical vs. TS Investment Corp | Kukdo Chemical vs. Coloray International Investment | Kukdo Chemical vs. Pureun Mutual Savings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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