Correlation Between TS Investment and Daejung Chemicals
Can any of the company-specific risk be diversified away by investing in both TS Investment and Daejung Chemicals 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 Daejung Chemicals 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 Daejung Chemicals Metals, you can compare the effects of market volatilities on TS Investment and Daejung Chemicals 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 Daejung Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Daejung Chemicals.
Diversification Opportunities for TS Investment and Daejung Chemicals
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 246690 and Daejung is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Daejung Chemicals Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejung Chemicals Metals 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 Daejung Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejung Chemicals Metals has no effect on the direction of TS Investment i.e., TS Investment and Daejung Chemicals go up and down completely randomly.
Pair Corralation between TS Investment and Daejung Chemicals
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Daejung Chemicals. In addition to that, TS Investment is 1.32 times more volatile than Daejung Chemicals Metals. It trades about -0.32 of its total potential returns per unit of risk. Daejung Chemicals Metals is currently generating about -0.31 per unit of volatility. If you would invest 1,395,000 in Daejung Chemicals Metals on September 4, 2024 and sell it today you would lose (145,000) from holding Daejung Chemicals Metals or give up 10.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Daejung Chemicals Metals
Performance |
| Timeline |
| TS Investment Corp |
| Daejung Chemicals Metals |
TS Investment and Daejung Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Daejung Chemicals
The main advantage of trading using opposite TS Investment and Daejung Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Daejung Chemicals 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 Daejung Chemicals will offset losses from the drop in Daejung Chemicals' 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 |
| Daejung Chemicals vs. Korea Information Communications | Daejung Chemicals vs. TS Investment Corp | Daejung Chemicals vs. Daelim Trading Co | Daejung Chemicals vs. Jeju Semiconductor Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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