Correlation Between Semyung Electric and TJ Media
Can any of the company-specific risk be diversified away by investing in both Semyung Electric and TJ Media 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 Semyung Electric and TJ Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semyung Electric Machinery and TJ media Co, you can compare the effects of market volatilities on Semyung Electric and TJ Media 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 Semyung Electric with a short position of TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semyung Electric and TJ Media.
Diversification Opportunities for Semyung Electric and TJ Media
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Semyung and 032540 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Semyung Electric Machinery and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media and Semyung Electric 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 Semyung Electric Machinery are associated (or correlated) with TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Semyung Electric i.e., Semyung Electric and TJ Media go up and down completely randomly.
Pair Corralation between Semyung Electric and TJ Media
Assuming the 90 days trading horizon Semyung Electric Machinery is expected to under-perform the TJ Media. In addition to that, Semyung Electric is 3.12 times more volatile than TJ media Co. It trades about -0.06 of its total potential returns per unit of risk. TJ media Co is currently generating about -0.14 per unit of volatility. If you would invest 545,000 in TJ media Co on September 24, 2024 and sell it today you would lose (59,000) from holding TJ media Co or give up 10.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Semyung Electric Machinery vs. TJ media Co
Performance |
Timeline |
Semyung Electric Mac |
TJ media |
Semyung Electric and TJ Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Semyung Electric and TJ Media
The main advantage of trading using opposite Semyung Electric and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semyung Electric position performs unexpectedly, TJ Media 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 TJ Media will offset losses from the drop in TJ Media's long position.Semyung Electric vs. UJU Electronics Co | Semyung Electric vs. Wave Electronics Co | Semyung Electric vs. Sungwoo Electronics Co | Semyung Electric vs. Cuckoo Electronics Co |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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