Correlation Between Cho Bi and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Cho Bi and EBEST Investment 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 Cho Bi and EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cho Bi and EBEST Investment Securities, you can compare the effects of market volatilities on Cho Bi and EBEST Investment 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 Cho Bi with a short position of EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Bi and EBEST Investment.
Diversification Opportunities for Cho Bi and EBEST Investment
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cho and EBEST is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cho Bi and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec and Cho Bi 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 Cho Bi are associated (or correlated) with EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Cho Bi i.e., Cho Bi and EBEST Investment go up and down completely randomly.
Pair Corralation between Cho Bi and EBEST Investment
Assuming the 90 days trading horizon Cho Bi is expected to under-perform the EBEST Investment. In addition to that, Cho Bi is 1.19 times more volatile than EBEST Investment Securities. It trades about -0.24 of its total potential returns per unit of risk. EBEST Investment Securities is currently generating about 0.03 per unit of volatility. If you would invest 399,000 in EBEST Investment Securities on November 28, 2024 and sell it today you would earn a total of 2,000 from holding EBEST Investment Securities or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cho Bi vs. EBEST Investment Securities
Performance |
| Timeline |
| Cho Bi |
| EBEST Investment Sec |
Cho Bi and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cho Bi and EBEST Investment
The main advantage of trading using opposite Cho Bi and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cho Bi position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Cho Bi vs. Samsung Electronics Co | Cho Bi vs. Samsung Electronics Co | Cho Bi vs. LG Energy Solution | Cho Bi vs. SK Hynix |
| EBEST Investment vs. Nable Communications | EBEST Investment vs. Pureun Mutual Savings | EBEST Investment vs. Aju IB Investment | EBEST Investment vs. Neungyule Education |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |