Correlation Between TFS Financial and Korea Electric
Can any of the company-specific risk be diversified away by investing in both TFS Financial 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 TFS Financial and Korea Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFS Financial and Korea Electric Power, you can compare the effects of market volatilities on TFS Financial 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 TFS Financial with a short position of Korea Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFS Financial and Korea Electric.
Diversification Opportunities for TFS Financial and Korea Electric
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between TFS and Korea is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TFS Financial 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 TFS Financial 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 TFS Financial 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 TFS Financial i.e., TFS Financial and Korea Electric go up and down completely randomly.
Pair Corralation between TFS Financial and Korea Electric
Given the investment horizon of 90 days TFS Financial is expected to generate 0.66 times more return on investment than Korea Electric. However, TFS Financial is 1.53 times less risky than Korea Electric. It trades about 0.04 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 1,294 in TFS Financial on February 18, 2024 and sell it today you would earn a total of 44.00 from holding TFS Financial or generate 3.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TFS Financial vs. Korea Electric Power
Performance |
Timeline |
TFS Financial |
Korea Electric Power |
TFS Financial and Korea Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TFS Financial and Korea Electric
The main advantage of trading using opposite TFS Financial and Korea Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS Financial 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.TFS Financial vs. First Hawaiian | TFS Financial vs. Territorial Bancorp | TFS Financial vs. Bank of Hawaii | TFS Financial vs. Financial Institutions |
Korea Electric vs. Dominion Energy | Korea Electric vs. Consolidated Edison | Korea Electric vs. Consumers Energy | Korea Electric vs. CMS Energy |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Stocks Directory Find actively traded stocks across global markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |