Correlation Between TS Investment and Home Center
Can any of the company-specific risk be diversified away by investing in both TS Investment and Home Center 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 Home Center 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 Home Center Holdings, you can compare the effects of market volatilities on TS Investment and Home Center 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 Home Center. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Home Center.
Diversification Opportunities for TS Investment and Home Center
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 246690 and Home is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Home Center Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Center Holdings 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 Home Center. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Center Holdings has no effect on the direction of TS Investment i.e., TS Investment and Home Center go up and down completely randomly.
Pair Corralation between TS Investment and Home Center
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Home Center. But the stock apears to be less risky and, when comparing its historical volatility, TS Investment Corp is 1.11 times less risky than Home Center. The stock trades about -0.06 of its potential returns per unit of risk. The Home Center Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 122,126 in Home Center Holdings on November 7, 2024 and sell it today you would lose (31,726) from holding Home Center Holdings or give up 25.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.44% |
| Values | Daily Returns |
TS Investment Corp vs. Home Center Holdings
Performance |
| Timeline |
| TS Investment Corp |
| Home Center Holdings |
TS Investment and Home Center Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Home Center
The main advantage of trading using opposite TS Investment and Home Center positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Home Center 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 Home Center will offset losses from the drop in Home Center'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 |
| Home Center vs. Taegu Broadcasting | Home Center vs. Hyunwoo Industrial Co | Home Center vs. Infinitt Healthcare Co | Home Center vs. INFINITT Healthcare 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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