Correlation Between SeAH Bestee and BYON
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and BYON 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 SeAH Bestee and BYON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and BYON Co, you can compare the effects of market volatilities on SeAH Bestee and BYON 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 SeAH Bestee with a short position of BYON. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and BYON.
Diversification Opportunities for SeAH Bestee and BYON
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeAH and BYON is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and BYON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYON and SeAH Bestee 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 SeAH Bestee are associated (or correlated) with BYON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYON has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and BYON go up and down completely randomly.
Pair Corralation between SeAH Bestee and BYON
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 1.04 times more return on investment than BYON. However, SeAH Bestee is 1.04 times more volatile than BYON Co. It trades about 0.08 of its potential returns per unit of risk. BYON Co is currently generating about 0.08 per unit of risk. If you would invest 1,977,000 in SeAH Bestee on August 25, 2024 and sell it today you would earn a total of 138,000 from holding SeAH Bestee or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Bestee vs. BYON Co
Performance |
| Timeline |
| SeAH Bestee |
| BYON |
SeAH Bestee and BYON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and BYON
The main advantage of trading using opposite SeAH Bestee and BYON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, BYON 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 BYON will offset losses from the drop in BYON's long position.| SeAH Bestee vs. Lotte Data Communication | SeAH Bestee vs. Korea Information Engineering | SeAH Bestee vs. Daol Investment Securities | SeAH Bestee vs. Nh Investment And |
| BYON vs. Daejung Chemicals Metals | BYON vs. Total Soft Bank | BYON vs. Incar Financial Service | BYON vs. Kukil Metal 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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