Correlation Between TS Investment and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both TS Investment and Myoung Shin 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 Myoung Shin 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 Myoung Shin Industrial, you can compare the effects of market volatilities on TS Investment and Myoung Shin 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 Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Myoung Shin.
Diversification Opportunities for TS Investment and Myoung Shin
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 246690 and Myoung is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial 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 Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of TS Investment i.e., TS Investment and Myoung Shin go up and down completely randomly.
Pair Corralation between TS Investment and Myoung Shin
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Myoung Shin. But the stock apears to be less risky and, when comparing its historical volatility, TS Investment Corp is 1.21 times less risky than Myoung Shin. The stock trades about -0.16 of its potential returns per unit of risk. The Myoung Shin Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,056,000 in Myoung Shin Industrial on November 8, 2024 and sell it today you would lose (2,000) from holding Myoung Shin Industrial or give up 0.19% 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. Myoung Shin Industrial
Performance |
| Timeline |
| TS Investment Corp |
| Myoung Shin Industrial |
TS Investment and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Myoung Shin
The main advantage of trading using opposite TS Investment and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| TS Investment vs. Kolon Plastics | TS Investment vs. Daejoo Electronic Materials | TS Investment vs. INNOX Advanced Materials | TS Investment vs. Cloud Air CoLtd |
| Myoung Shin vs. Hanwha Chemical Corp | Myoung Shin vs. Kg Chemical | Myoung Shin vs. Handok Clean Tech | Myoung Shin vs. Sewoon Medical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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