Correlation Between Koss and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Koss and Tingyi Holding 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 Koss and Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koss Corporation and Tingyi Holding Corp, you can compare the effects of market volatilities on Koss and Tingyi Holding 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 Koss with a short position of Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koss and Tingyi Holding.
Diversification Opportunities for Koss and Tingyi Holding
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koss and Tingyi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp and Koss 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 Koss Corporation are associated (or correlated) with Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of Koss i.e., Koss and Tingyi Holding go up and down completely randomly.
Pair Corralation between Koss and Tingyi Holding
If you would invest 704.00 in Koss Corporation on September 14, 2024 and sell it today you would earn a total of 33.00 from holding Koss Corporation or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Koss Corp. vs. Tingyi Holding Corp
Performance |
| Timeline |
| Koss |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Koss and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koss and Tingyi Holding
The main advantage of trading using opposite Koss and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koss position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.The idea behind Koss Corporation and Tingyi Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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