Correlation Between DONGKUK COATED and TSI Co
Can any of the company-specific risk be diversified away by investing in both DONGKUK COATED and TSI Co 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 DONGKUK COATED and TSI Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and TSI Co, you can compare the effects of market volatilities on DONGKUK COATED and TSI Co 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 DONGKUK COATED with a short position of TSI Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK COATED and TSI Co.
Diversification Opportunities for DONGKUK COATED and TSI Co
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DONGKUK and TSI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and TSI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSI Co and DONGKUK COATED 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 DONGKUK TED METAL are associated (or correlated) with TSI Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSI Co has no effect on the direction of DONGKUK COATED i.e., DONGKUK COATED and TSI Co go up and down completely randomly.
Pair Corralation between DONGKUK COATED and TSI Co
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.8 times more return on investment than TSI Co. However, DONGKUK TED METAL is 1.25 times less risky than TSI Co. It trades about -0.07 of its potential returns per unit of risk. TSI Co is currently generating about -0.18 per unit of risk. If you would invest 663,000 in DONGKUK TED METAL on September 12, 2024 and sell it today you would lose (59,000) from holding DONGKUK TED METAL or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. TSI Co
Performance |
| Timeline |
| DONGKUK TED METAL |
| TSI Co |
DONGKUK COATED and TSI Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK COATED and TSI Co
The main advantage of trading using opposite DONGKUK COATED and TSI Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK COATED position performs unexpectedly, TSI Co 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 TSI Co will offset losses from the drop in TSI Co's long position.| DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. LG Energy Solution | DONGKUK COATED vs. SK Hynix |
| 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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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