Correlation Between Eugene Investment and SK IE
Can any of the company-specific risk be diversified away by investing in both Eugene Investment and SK IE 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 Eugene Investment and SK IE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Investment Securities and SK IE Technology, you can compare the effects of market volatilities on Eugene Investment and SK IE 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 Eugene Investment with a short position of SK IE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Investment and SK IE.
Diversification Opportunities for Eugene Investment and SK IE
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eugene and 361610 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Investment Securities and SK IE Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK IE Technology and Eugene 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 Eugene Investment Securities are associated (or correlated) with SK IE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK IE Technology has no effect on the direction of Eugene Investment i.e., Eugene Investment and SK IE go up and down completely randomly.
Pair Corralation between Eugene Investment and SK IE
Assuming the 90 days trading horizon Eugene Investment Securities is expected to under-perform the SK IE. In addition to that, Eugene Investment is 1.08 times more volatile than SK IE Technology. It trades about -0.35 of its total potential returns per unit of risk. SK IE Technology is currently generating about -0.23 per unit of volatility. If you would invest 3,350,000 in SK IE Technology on August 29, 2024 and sell it today you would lose (560,000) from holding SK IE Technology or give up 16.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Investment Securities vs. SK IE Technology
Performance |
| Timeline |
| Eugene Investment |
| SK IE Technology |
Eugene Investment and SK IE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Investment and SK IE
The main advantage of trading using opposite Eugene Investment and SK IE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Investment position performs unexpectedly, SK IE 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 SK IE will offset losses from the drop in SK IE's long position.| Eugene Investment vs. AptaBio Therapeutics | Eugene Investment vs. Daewoo SBI SPAC | Eugene Investment vs. Dream Security co | Eugene Investment vs. Microfriend |
| SK IE vs. Polaris Office Corp | SK IE vs. Hankook Furniture Co | SK IE vs. ITM Semiconductor Co | SK IE vs. Eugene Investment Securities |
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 Correlations module to find global opportunities by holding instruments from different markets.
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