Correlation Between TS Investment and Korea Investment
Can any of the company-specific risk be diversified away by investing in both TS Investment and Korea Investment 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 Korea Investment 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 Korea Investment Holdings, you can compare the effects of market volatilities on TS Investment and Korea Investment 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 Korea Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Korea Investment.
Diversification Opportunities for TS Investment and Korea Investment
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 246690 and Korea is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Korea Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Investment 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 Korea Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Investment Holdings has no effect on the direction of TS Investment i.e., TS Investment and Korea Investment go up and down completely randomly.
Pair Corralation between TS Investment and Korea Investment
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Korea Investment. In addition to that, TS Investment is 1.32 times more volatile than Korea Investment Holdings. It trades about -0.07 of its total potential returns per unit of risk. Korea Investment Holdings is currently generating about 0.04 per unit of volatility. If you would invest 4,324,670 in Korea Investment Holdings on August 24, 2024 and sell it today you would earn a total of 1,045,330 from holding Korea Investment Holdings or generate 24.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Korea Investment Holdings
Performance |
| Timeline |
| TS Investment Corp |
| Korea Investment Holdings |
TS Investment and Korea Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Korea Investment
The main advantage of trading using opposite TS Investment and Korea Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Korea Investment 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 Korea Investment will offset losses from the drop in Korea Investment's long position.| TS Investment vs. Samsung Electronics Co | TS Investment vs. Samsung Electronics Co | TS Investment vs. LG Energy Solution | TS Investment vs. SK Hynix |
| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Daewoo SBI SPAC | Korea Investment vs. Dream Security co | Korea Investment vs. Microfriend |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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