Correlation Between TSI Co and Lotte Non-Life
Can any of the company-specific risk be diversified away by investing in both TSI Co and Lotte Non-Life 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 TSI Co and Lotte Non-Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSI Co and Lotte Non Life Insurance, you can compare the effects of market volatilities on TSI Co and Lotte Non-Life 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 TSI Co with a short position of Lotte Non-Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSI Co and Lotte Non-Life.
Diversification Opportunities for TSI Co and Lotte Non-Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TSI and Lotte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TSI Co and Lotte Non Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Non Life and TSI Co 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 TSI Co are associated (or correlated) with Lotte Non-Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Non Life has no effect on the direction of TSI Co i.e., TSI Co and Lotte Non-Life go up and down completely randomly.
Pair Corralation between TSI Co and Lotte Non-Life
If you would invest (100.00) in TSI Co on September 12, 2024 and sell it today you would earn a total of 100.00 from holding TSI Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TSI Co vs. Lotte Non Life Insurance
Performance |
| Timeline |
| TSI Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lotte Non Life |
TSI Co and Lotte Non-Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSI Co and Lotte Non-Life
The main advantage of trading using opposite TSI Co and Lotte Non-Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSI Co position performs unexpectedly, Lotte Non-Life 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 Lotte Non-Life will offset losses from the drop in Lotte Non-Life's long position.| TSI Co vs. Eugene Technology CoLtd | TSI Co vs. HB Technology TD | TSI Co vs. THiRA UTECH LTD | TSI Co vs. Dong A Steel Technology |
| Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. SK Hynix | Lotte Non-Life vs. POSCO Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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