Correlation Between TS Investment and TAEYANG
Can any of the company-specific risk be diversified away by investing in both TS Investment and TAEYANG 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 TAEYANG 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 TAEYANG, you can compare the effects of market volatilities on TS Investment and TAEYANG 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 TAEYANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and TAEYANG.
Diversification Opportunities for TS Investment and TAEYANG
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 246690 and TAEYANG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and TAEYANG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAEYANG 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 TAEYANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAEYANG has no effect on the direction of TS Investment i.e., TS Investment and TAEYANG go up and down completely randomly.
Pair Corralation between TS Investment and TAEYANG
Assuming the 90 days trading horizon TS Investment Corp is expected to generate 3.36 times more return on investment than TAEYANG. However, TS Investment is 3.36 times more volatile than TAEYANG. It trades about 0.07 of its potential returns per unit of risk. TAEYANG is currently generating about 0.18 per unit of risk. If you would invest 89,200 in TS Investment Corp on October 30, 2024 and sell it today you would earn a total of 7,400 from holding TS Investment Corp or generate 8.3% 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. TAEYANG
Performance |
| Timeline |
| TS Investment Corp |
| TAEYANG |
TS Investment and TAEYANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and TAEYANG
The main advantage of trading using opposite TS Investment and TAEYANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, TAEYANG 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 TAEYANG will offset losses from the drop in TAEYANG's long position.| TS Investment vs. Narae Nanotech Corp | TS Investment vs. Orbitech Co | TS Investment vs. Organic Special Pet | TS Investment vs. PH Tech Co |
| TAEYANG vs. Dongsin Engineering Construction | TAEYANG vs. Doosan Fuel Cell | TAEYANG vs. Daishin Balance 1 | TAEYANG vs. Total Soft Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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