Correlation Between TSI and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both TSI and Sangsangin Investment 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 and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSI Co and Sangsangin Investment Securities, you can compare the effects of market volatilities on TSI and Sangsangin Investment 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 with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSI and Sangsangin Investment.
Diversification Opportunities for TSI and Sangsangin Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TSI and Sangsangin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding TSI Co and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and TSI 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 Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of TSI i.e., TSI and Sangsangin Investment go up and down completely randomly.
Pair Corralation between TSI and Sangsangin Investment
Assuming the 90 days trading horizon TSI Co is expected to under-perform the Sangsangin Investment. In addition to that, TSI is 1.84 times more volatile than Sangsangin Investment Securities. It trades about -0.35 of its total potential returns per unit of risk. Sangsangin Investment Securities is currently generating about -0.09 per unit of volatility. If you would invest 45,100 in Sangsangin Investment Securities on September 4, 2024 and sell it today you would lose (1,200) from holding Sangsangin Investment Securities or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSI Co vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| TSI Co |
| Sangsangin Investment |
TSI and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSI and Sangsangin Investment
The main advantage of trading using opposite TSI and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSI position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| TSI vs. Lotte Non Life Insurance | TSI vs. Kukil Metal Co | TSI vs. DONGKUK TED METAL | TSI vs. Taeyang Metal Industrial |
| Sangsangin Investment vs. Dongjin Semichem Co | Sangsangin Investment vs. AhnLab Inc | Sangsangin Investment vs. Posco ICT | Sangsangin Investment vs. CJ ENM |
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.
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