Correlation Between Kerry TJ and Eastern Media
Can any of the company-specific risk be diversified away by investing in both Kerry TJ and Eastern Media 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 Kerry TJ and Eastern Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerry TJ Logistics and Eastern Media International, you can compare the effects of market volatilities on Kerry TJ and Eastern Media 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 Kerry TJ with a short position of Eastern Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry TJ and Eastern Media.
Diversification Opportunities for Kerry TJ and Eastern Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kerry and Eastern is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kerry TJ Logistics and Eastern Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Media Intern and Kerry TJ 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 Kerry TJ Logistics are associated (or correlated) with Eastern Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Media Intern has no effect on the direction of Kerry TJ i.e., Kerry TJ and Eastern Media go up and down completely randomly.
Pair Corralation between Kerry TJ and Eastern Media
Assuming the 90 days trading horizon Kerry TJ Logistics is expected to generate 0.51 times more return on investment than Eastern Media. However, Kerry TJ Logistics is 1.94 times less risky than Eastern Media. It trades about -0.16 of its potential returns per unit of risk. Eastern Media International is currently generating about -0.27 per unit of risk. If you would invest 4,020 in Kerry TJ Logistics on October 26, 2024 and sell it today you would lose (140.00) from holding Kerry TJ Logistics or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kerry TJ Logistics vs. Eastern Media International
Performance |
| Timeline |
| Kerry TJ Logistics |
| Eastern Media Intern |
Kerry TJ and Eastern Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kerry TJ and Eastern Media
The main advantage of trading using opposite Kerry TJ and Eastern Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerry TJ position performs unexpectedly, Eastern Media 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 Eastern Media will offset losses from the drop in Eastern Media's long position.| Kerry TJ vs. U Ming Marine Transport | Kerry TJ vs. Evergreen International Storage | Kerry TJ vs. Yang Ming Marine | Kerry TJ vs. President Chain Store |
| Eastern Media vs. Chang Type Industrial | Eastern Media vs. Anderson Industrial Corp | Eastern Media vs. Klingon Aerospace | Eastern Media vs. Basso Industry 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |