Correlation Between Lindeman Asia and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both Lindeman Asia and Taegu Broadcasting 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 Lindeman Asia and Taegu Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindeman Asia Investment and Taegu Broadcasting, you can compare the effects of market volatilities on Lindeman Asia and Taegu Broadcasting 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 Lindeman Asia with a short position of Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindeman Asia and Taegu Broadcasting.
Diversification Opportunities for Lindeman Asia and Taegu Broadcasting
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindeman and Taegu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lindeman Asia Investment and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting and Lindeman Asia 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 Lindeman Asia Investment are associated (or correlated) with Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of Lindeman Asia i.e., Lindeman Asia and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between Lindeman Asia and Taegu Broadcasting
Assuming the 90 days trading horizon Lindeman Asia Investment is expected to generate 3.29 times more return on investment than Taegu Broadcasting. However, Lindeman Asia is 3.29 times more volatile than Taegu Broadcasting. It trades about 0.19 of its potential returns per unit of risk. Taegu Broadcasting is currently generating about 0.03 per unit of risk. If you would invest 407,000 in Lindeman Asia Investment on November 27, 2024 and sell it today you would earn a total of 76,000 from holding Lindeman Asia Investment or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindeman Asia Investment vs. Taegu Broadcasting
Performance |
| Timeline |
| Lindeman Asia Investment |
| Taegu Broadcasting |
Lindeman Asia and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindeman Asia and Taegu Broadcasting
The main advantage of trading using opposite Lindeman Asia and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindeman Asia position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| Lindeman Asia vs. Nh Investment And | Lindeman Asia vs. Hanwha InvestmentSecurities Co | Lindeman Asia vs. Company K Partners | Lindeman Asia vs. FnGuide |
| Taegu Broadcasting vs. Samji Electronics Co | Taegu Broadcasting vs. Sungmoon Electronics Co | Taegu Broadcasting vs. Samwha Electronics Co | Taegu Broadcasting vs. Daejung Chemicals Metals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |