Correlation Between TS Investment and Busan Ind
Can any of the company-specific risk be diversified away by investing in both TS Investment and Busan Ind 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 Busan Ind 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 Busan Ind, you can compare the effects of market volatilities on TS Investment and Busan Ind 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 Busan Ind. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Busan Ind.
Diversification Opportunities for TS Investment and Busan Ind
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 246690 and Busan is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Busan Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Ind 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 Busan Ind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Ind has no effect on the direction of TS Investment i.e., TS Investment and Busan Ind go up and down completely randomly.
Pair Corralation between TS Investment and Busan Ind
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Busan Ind. But the stock apears to be less risky and, when comparing its historical volatility, TS Investment Corp is 2.01 times less risky than Busan Ind. The stock trades about -0.19 of its potential returns per unit of risk. The Busan Ind is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 7,650,000 in Busan Ind on November 7, 2024 and sell it today you would lose (490,000) from holding Busan Ind or give up 6.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Busan Ind
Performance |
| Timeline |
| TS Investment Corp |
| Busan Ind |
TS Investment and Busan Ind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Busan Ind
The main advantage of trading using opposite TS Investment and Busan Ind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Busan Ind 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 Busan Ind will offset losses from the drop in Busan Ind's long position.| TS Investment vs. TJ media Co | TS Investment vs. Hotel Shilla Co | TS Investment vs. Kaonmedia Co | TS Investment vs. Tamul Multimedia Co |
| Busan Ind vs. Sempio Foods Co | Busan Ind vs. Sung Bo Chemicals | Busan Ind vs. Kukdo Chemical Co | Busan Ind vs. Lotte Fine Chemical |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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