Correlation Between Kang Yong and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both Kang Yong and TISCO Financial 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 Kang Yong and TISCO Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kang Yong Electric and TISCO Financial Group, you can compare the effects of market volatilities on Kang Yong and TISCO Financial 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 Kang Yong with a short position of TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and TISCO Financial.
Diversification Opportunities for Kang Yong and TISCO Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kang and TISCO is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group and Kang Yong 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 Kang Yong Electric are associated (or correlated) with TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of Kang Yong i.e., Kang Yong and TISCO Financial go up and down completely randomly.
Pair Corralation between Kang Yong and TISCO Financial
Assuming the 90 days trading horizon Kang Yong Electric is expected to under-perform the TISCO Financial. In addition to that, Kang Yong is 1.08 times more volatile than TISCO Financial Group. It trades about -0.19 of its total potential returns per unit of risk. TISCO Financial Group is currently generating about -0.15 per unit of volatility. If you would invest 9,700 in TISCO Financial Group on August 29, 2024 and sell it today you would lose (100.00) from holding TISCO Financial Group or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kang Yong Electric vs. TISCO Financial Group
Performance |
| Timeline |
| Kang Yong Electric |
| TISCO Financial Group |
Kang Yong and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kang Yong and TISCO Financial
The main advantage of trading using opposite Kang Yong and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial's long position.| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip Public |
| TISCO Financial vs. Karmarts Public | TISCO Financial vs. Kang Yong Electric | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCG PACKAGING PCL NVDR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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