Correlation Between Bohae Brewery and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Bohae Brewery and Myoung Shin 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 Bohae Brewery and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bohae Brewery and Myoung Shin Industrial, you can compare the effects of market volatilities on Bohae Brewery and Myoung Shin 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 Bohae Brewery with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohae Brewery and Myoung Shin.
Diversification Opportunities for Bohae Brewery and Myoung Shin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bohae and Myoung is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bohae Brewery and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Bohae Brewery 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 Bohae Brewery are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Bohae Brewery i.e., Bohae Brewery and Myoung Shin go up and down completely randomly.
Pair Corralation between Bohae Brewery and Myoung Shin
Assuming the 90 days trading horizon Bohae Brewery is expected to generate 1.53 times more return on investment than Myoung Shin. However, Bohae Brewery is 1.53 times more volatile than Myoung Shin Industrial. It trades about 0.18 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about 0.01 per unit of risk. If you would invest 42,100 in Bohae Brewery on August 24, 2024 and sell it today you would earn a total of 10,900 from holding Bohae Brewery or generate 25.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohae Brewery vs. Myoung Shin Industrial
Performance |
| Timeline |
| Bohae Brewery |
| Myoung Shin Industrial |
Bohae Brewery and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohae Brewery and Myoung Shin
The main advantage of trading using opposite Bohae Brewery and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohae Brewery position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Bohae Brewery vs. AptaBio Therapeutics | Bohae Brewery vs. Daewoo SBI SPAC | Bohae Brewery vs. Dream Security co | Bohae Brewery vs. Microfriend |
| Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind | Myoung Shin vs. Mirae Asset Daewoo | Myoung Shin vs. UNISEM Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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