Correlation Between TXNM Energy, and Korea Electric
Can any of the company-specific risk be diversified away by investing in both TXNM Energy, and Korea Electric 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 TXNM Energy, and Korea Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TXNM Energy, and Korea Electric Power, you can compare the effects of market volatilities on TXNM Energy, and Korea Electric 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 TXNM Energy, with a short position of Korea Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of TXNM Energy, and Korea Electric.
Diversification Opportunities for TXNM Energy, and Korea Electric
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TXNM and Korea is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TXNM Energy, and Korea Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Electric Power and TXNM Energy, 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 TXNM Energy, are associated (or correlated) with Korea Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Electric Power has no effect on the direction of TXNM Energy, i.e., TXNM Energy, and Korea Electric go up and down completely randomly.
Pair Corralation between TXNM Energy, and Korea Electric
Given the investment horizon of 90 days TXNM Energy, is expected to generate 0.63 times more return on investment than Korea Electric. However, TXNM Energy, is 1.58 times less risky than Korea Electric. It trades about 0.41 of its potential returns per unit of risk. Korea Electric Power is currently generating about 0.1 per unit of risk. If you would invest 4,374 in TXNM Energy, on August 28, 2024 and sell it today you would earn a total of 547.00 from holding TXNM Energy, or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TXNM Energy, vs. Korea Electric Power
Performance |
| Timeline |
| TXNM Energy, |
| Korea Electric Power |
TXNM Energy, and Korea Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TXNM Energy, and Korea Electric
The main advantage of trading using opposite TXNM Energy, and Korea Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TXNM Energy, position performs unexpectedly, Korea Electric 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 Korea Electric will offset losses from the drop in Korea Electric's long position.| TXNM Energy, vs. Ecoloclean Industrs | TXNM Energy, vs. Apogee Enterprises | TXNM Energy, vs. Cementos Pacasmayo SAA | TXNM Energy, vs. Barrick Gold Corp |
| Korea Electric vs. Dominion Energy | Korea Electric vs. Consolidated Edison | Korea Electric vs. Eversource Energy | Korea Electric vs. FirstEnergy |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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