Correlation Between TS Investment and Wonil Special
Can any of the company-specific risk be diversified away by investing in both TS Investment and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on TS Investment and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Wonil Special.
Diversification Opportunities for TS Investment and Wonil Special
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 246690 and Wonil is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of TS Investment i.e., TS Investment and Wonil Special go up and down completely randomly.
Pair Corralation between TS Investment and Wonil Special
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Wonil Special. In addition to that, TS Investment is 1.96 times more volatile than Wonil Special Steel. It trades about -0.05 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about -0.05 per unit of volatility. If you would invest 950,576 in Wonil Special Steel on October 24, 2024 and sell it today you would lose (222,576) from holding Wonil Special Steel or give up 23.41% 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. Wonil Special Steel
Performance |
| Timeline |
| TS Investment Corp |
| Wonil Special Steel |
TS Investment and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Wonil Special
The main advantage of trading using opposite TS Investment and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special'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 |
| Wonil Special vs. Kukdong Oil Chemicals | Wonil Special vs. Aprogen Healthcare Games | Wonil Special vs. Youngchang Chemical Co | Wonil Special vs. Youl Chon 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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