Correlation Between Grand Ocean and TUL
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and TUL 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 Grand Ocean and TUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and TUL Corporation, you can compare the effects of market volatilities on Grand Ocean and TUL 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 Grand Ocean with a short position of TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and TUL.
Diversification Opportunities for Grand Ocean and TUL
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grand and TUL is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Grand Ocean i.e., Grand Ocean and TUL go up and down completely randomly.
Pair Corralation between Grand Ocean and TUL
Assuming the 90 days trading horizon Grand Ocean Retail is expected to under-perform the TUL. But the stock apears to be less risky and, when comparing its historical volatility, Grand Ocean Retail is 1.16 times less risky than TUL. The stock trades about -0.02 of its potential returns per unit of risk. The TUL Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,310 in TUL Corporation on September 13, 2024 and sell it today you would earn a total of 60.00 from holding TUL Corporation or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. TUL Corp.
Performance |
| Timeline |
| Grand Ocean Retail |
| TUL Corporation |
Grand Ocean and TUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and TUL
The main advantage of trading using opposite Grand Ocean and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL's long position.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| TUL vs. Fubon Financial Holding | TUL vs. Wei Chuan Foods | TUL vs. First Insurance Co | TUL vs. Sinopac Financial 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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