Correlation Between TSI and Daebo Magnetic

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

By analyzing existing cross correlation between TSI Co and Daebo Magnetic CoLtd, you can compare the effects of market volatilities on TSI and Daebo Magnetic 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 TSI with a short position of Daebo Magnetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSI and Daebo Magnetic.

Diversification Opportunities for TSI and Daebo Magnetic

0.0

Correlation Coefficient

TSI  Daebo Magnetic

Pay attention - limited upside

The 3 months correlation between TSI and Daebo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TSI Co and Daebo Magnetic CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daebo Magnetic CoLtd and TSI 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 TSI Co are associated (or correlated) with Daebo Magnetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daebo Magnetic CoLtd has no effect on the direction of TSI i.e., TSI and Daebo Magnetic go up and down completely randomly.

Pair Corralation between TSI and Daebo Magnetic

If you would invest (100.00) in TSI Co on December 31, 2024 and sell it today you would earn a total of  100.00  from holding TSI Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TSI Co  vs.  Daebo Magnetic CoLtd

TSI Co

Risk-Adjusted Performance

Very Weak

Over the last 90 days TSI Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TSI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Daebo Magnetic CoLtd

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daebo Magnetic CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TSI and Daebo Magnetic

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

The idea behind TSI Co and Daebo Magnetic CoLtd 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.