Correlation Between Lotte Data and TJ Media
Can any of the company-specific risk be diversified away by investing in both Lotte Data and TJ 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 Lotte Data and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Data Communication and TJ media Co, you can compare the effects of market volatilities on Lotte Data and TJ 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 Lotte Data with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Data and TJ Media.
Diversification Opportunities for Lotte Data and TJ Media
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotte and 032540 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Data Communication and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Lotte Data 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 Lotte Data Communication are associated (or correlated) with TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Lotte Data i.e., Lotte Data and TJ Media go up and down completely randomly.
Pair Corralation between Lotte Data and TJ Media
Assuming the 90 days trading horizon Lotte Data Communication is expected to under-perform the TJ Media. In addition to that, Lotte Data is 1.83 times more volatile than TJ media Co. It trades about -0.23 of its total potential returns per unit of risk. TJ media Co is currently generating about -0.08 per unit of volatility. If you would invest 510,000 in TJ media Co on September 12, 2024 and sell it today you would lose (15,000) from holding TJ media Co or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Data Communication vs. TJ media Co
Performance |
| Timeline |
| Lotte Data Communication |
| TJ media |
Lotte Data and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Data and TJ Media
The main advantage of trading using opposite Lotte Data and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Data position performs unexpectedly, TJ 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 TJ Media will offset losses from the drop in TJ Media's long position.| Lotte Data vs. SK Holdings Co | Lotte Data vs. Solution Advanced Technology | Lotte Data vs. Busan Industrial Co | Lotte Data vs. Busan Ind |
| TJ Media vs. RFTech Co | TJ Media vs. Nh Investment And | TJ Media vs. Stic Investments | TJ Media vs. PH Tech Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |