Correlation Between TS Investment and Han Kook
Can any of the company-specific risk be diversified away by investing in both TS Investment and Han Kook 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 Han Kook 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 Han Kook Steel, you can compare the effects of market volatilities on TS Investment and Han Kook 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 Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Han Kook.
Diversification Opportunities for TS Investment and Han Kook
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 246690 and Han is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook 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 Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of TS Investment i.e., TS Investment and Han Kook go up and down completely randomly.
Pair Corralation between TS Investment and Han Kook
Assuming the 90 days trading horizon TS Investment Corp is expected to generate 1.57 times more return on investment than Han Kook. However, TS Investment is 1.57 times more volatile than Han Kook Steel. It trades about -0.13 of its potential returns per unit of risk. Han Kook Steel is currently generating about -0.58 per unit of risk. If you would invest 100,800 in TS Investment Corp on November 6, 2024 and sell it today you would lose (3,600) from holding TS Investment Corp or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Han Kook Steel
Performance |
| Timeline |
| TS Investment Corp |
| Han Kook Steel |
TS Investment and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Han Kook
The main advantage of trading using opposite TS Investment and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook'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 |
| Han Kook vs. Innowireless Co | Han Kook vs. Daesung Industrial Co | Han Kook vs. Industrial Bank | Han Kook vs. PJ Metal 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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