Correlation Between TS Investment and Jb Financial
Can any of the company-specific risk be diversified away by investing in both TS Investment and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on TS Investment and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Jb Financial.
Diversification Opportunities for TS Investment and Jb Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 246690 and 175330 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of TS Investment i.e., TS Investment and Jb Financial go up and down completely randomly.
Pair Corralation between TS Investment and Jb Financial
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Jb Financial. In addition to that, TS Investment is 1.08 times more volatile than Jb Financial. It trades about -0.03 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.12 per unit of volatility. If you would invest 805,027 in Jb Financial on October 16, 2024 and sell it today you would earn a total of 929,973 from holding Jb Financial or generate 115.52% 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. Jb Financial
Performance |
| Timeline |
| TS Investment Corp |
| Jb Financial |
TS Investment and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Jb Financial
The main advantage of trading using opposite TS Investment and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| TS Investment vs. Alton Sports CoLtd | TS Investment vs. Aprogen Healthcare Games | TS Investment vs. Pan Entertainment Co | TS Investment vs. InnoTherapy |
| Jb Financial vs. TS Investment Corp | Jb Financial vs. SBI Investment KOREA | Jb Financial vs. Kakao Games Corp | Jb Financial vs. E Investment Development |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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