Correlation Between TS Investment and Seoul Electronics
Can any of the company-specific risk be diversified away by investing in both TS Investment and Seoul Electronics 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 Seoul Electronics 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 Seoul Electronics Telecom, you can compare the effects of market volatilities on TS Investment and Seoul Electronics 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 Seoul Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Seoul Electronics.
Diversification Opportunities for TS Investment and Seoul Electronics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 246690 and Seoul is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Seoul Electronics Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Electronics Telecom 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 Seoul Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Electronics Telecom has no effect on the direction of TS Investment i.e., TS Investment and Seoul Electronics go up and down completely randomly.
Pair Corralation between TS Investment and Seoul Electronics
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Seoul Electronics. In addition to that, TS Investment is 1.39 times more volatile than Seoul Electronics Telecom. It trades about -0.23 of its total potential returns per unit of risk. Seoul Electronics Telecom is currently generating about -0.09 per unit of volatility. If you would invest 26,100 in Seoul Electronics Telecom on August 28, 2024 and sell it today you would lose (800.00) from holding Seoul Electronics Telecom or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Seoul Electronics Telecom
Performance |
| Timeline |
| TS Investment Corp |
| Seoul Electronics Telecom |
TS Investment and Seoul Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Seoul Electronics
The main advantage of trading using opposite TS Investment and Seoul Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Seoul Electronics 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 Seoul Electronics will offset losses from the drop in Seoul Electronics' long position.| TS Investment vs. Sejong Telecom | TS Investment vs. Sunny Electronics Corp | TS Investment vs. Jeju Beer Co | TS Investment vs. Cuckoo Electronics Co |
| Seoul Electronics vs. Nh Investment And | Seoul Electronics vs. Mobile Appliance | Seoul Electronics vs. TS Investment Corp | Seoul Electronics vs. Sangsangin Investment Securities |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |