Correlation Between TS Investment and Stic Investments
Can any of the company-specific risk be diversified away by investing in both TS Investment and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on TS Investment and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Stic Investments.
Diversification Opportunities for TS Investment and Stic Investments
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 246690 and Stic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of TS Investment i.e., TS Investment and Stic Investments go up and down completely randomly.
Pair Corralation between TS Investment and Stic Investments
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Stic Investments. But the stock apears to be less risky and, when comparing its historical volatility, TS Investment Corp is 1.07 times less risky than Stic Investments. The stock trades about -0.31 of its potential returns per unit of risk. The Stic Investments is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 809,000 in Stic Investments on September 5, 2024 and sell it today you would earn a total of 50,000 from holding Stic Investments or generate 6.18% 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. Stic Investments
Performance |
| Timeline |
| TS Investment Corp |
| Stic Investments |
TS Investment and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Stic Investments
The main advantage of trading using opposite TS Investment and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| TS Investment vs. Hyosung Advanced Materials | TS Investment vs. National Plastic Co | TS Investment vs. Jeil Steel Mfg | TS Investment vs. Dongbu Steel Co |
| Stic Investments vs. DB Insurance Co | Stic Investments vs. Jinro Distillers Co | Stic Investments vs. Pureun Mutual Savings | Stic Investments vs. Koryo Credit Information |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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