Correlation Between TS Investment and Haesung DS

Can any of the company-specific risk be diversified away by investing in both TS Investment and Haesung DS 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 TS Investment and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TS Investment Corp and Haesung DS Co, you can compare the effects of market volatilities on TS Investment and Haesung DS 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 TS Investment with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Haesung DS.

Diversification Opportunities for TS Investment and Haesung DS

0.81

Correlation Coefficient

TS Investment  Haesung DS

Very poor diversification

The 3 months correlation between 246690 and Haesung is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and TS Investment 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 TS Investment Corp are associated (or correlated) with Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of TS Investment i.e., TS Investment and Haesung DS go up and down completely randomly.

Pair Corralation between TS Investment and Haesung DS

Assuming the 90 days trading horizon TS Investment Corp is expected to generate 1.61 times more return on investment than Haesung DS. However, TS Investment is 1.61 times more volatile than Haesung DS Co. It trades about 0.26 of its potential returns per unit of risk. Haesung DS Co is currently generating about 0.25 per unit of risk. If you would invest  93,600  in TS Investment Corp on December 4, 2024 and sell it today you would earn a total of  41,700  from holding TS Investment Corp or generate 44.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

TS Investment Corp  vs.  Haesung DS Co

TS Investment Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TS Investment Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, TS Investment sustained solid returns over the last few months and may actually be approaching a breakup point.

Haesung DS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Haesung DS Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Haesung DS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TS Investment and Haesung DS

The main advantage of trading using opposite TS Investment and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.

The idea behind TS Investment Corp and Haesung DS Co 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.