Correlation Between Bohae Brewery and ECSTELECOM
Can any of the company-specific risk be diversified away by investing in both Bohae Brewery and ECSTELECOM 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 ECSTELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bohae Brewery and ECSTELECOM Co, you can compare the effects of market volatilities on Bohae Brewery and ECSTELECOM 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 ECSTELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohae Brewery and ECSTELECOM.
Diversification Opportunities for Bohae Brewery and ECSTELECOM
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bohae and ECSTELECOM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bohae Brewery and ECSTELECOM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECSTELECOM 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 ECSTELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECSTELECOM has no effect on the direction of Bohae Brewery i.e., Bohae Brewery and ECSTELECOM go up and down completely randomly.
Pair Corralation between Bohae Brewery and ECSTELECOM
Assuming the 90 days trading horizon Bohae Brewery is expected to under-perform the ECSTELECOM. In addition to that, Bohae Brewery is 1.2 times more volatile than ECSTELECOM Co. It trades about 0.0 of its total potential returns per unit of risk. ECSTELECOM Co is currently generating about 0.0 per unit of volatility. If you would invest 328,671 in ECSTELECOM Co on September 14, 2024 and sell it today you would lose (33,671) from holding ECSTELECOM Co or give up 10.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bohae Brewery vs. ECSTELECOM Co
Performance |
Timeline |
Bohae Brewery |
ECSTELECOM |
Bohae Brewery and ECSTELECOM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bohae Brewery and ECSTELECOM
The main advantage of trading using opposite Bohae Brewery and ECSTELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohae Brewery position performs unexpectedly, ECSTELECOM 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 ECSTELECOM will offset losses from the drop in ECSTELECOM's long position.Bohae Brewery vs. Korea New Network | Bohae Brewery vs. ICD Co | Bohae Brewery vs. DYPNF CoLtd | Bohae Brewery vs. Solution Advanced Technology |
ECSTELECOM vs. Solution Advanced Technology | ECSTELECOM vs. Busan Industrial Co | ECSTELECOM vs. Busan Ind | ECSTELECOM vs. Sam Chun Dang |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |