Correlation Between Sung Bo and Orbitech
Can any of the company-specific risk be diversified away by investing in both Sung Bo and Orbitech 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 Sung Bo and Orbitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sung Bo Chemicals and Orbitech Co, you can compare the effects of market volatilities on Sung Bo and Orbitech 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 Sung Bo with a short position of Orbitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sung Bo and Orbitech.
Diversification Opportunities for Sung Bo and Orbitech
Modest diversification
The 3 months correlation between Sung and Orbitech is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sung Bo Chemicals and Orbitech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbitech and Sung Bo 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 Sung Bo Chemicals are associated (or correlated) with Orbitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbitech has no effect on the direction of Sung Bo i.e., Sung Bo and Orbitech go up and down completely randomly.
Pair Corralation between Sung Bo and Orbitech
Assuming the 90 days trading horizon Sung Bo is expected to generate 4.07 times less return on investment than Orbitech. But when comparing it to its historical volatility, Sung Bo Chemicals is 3.84 times less risky than Orbitech. It trades about 0.02 of its potential returns per unit of risk. Orbitech Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 239,000 in Orbitech Co on November 2, 2024 and sell it today you would earn a total of 500.00 from holding Orbitech Co or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sung Bo Chemicals vs. Orbitech Co
Performance |
| Timeline |
| Sung Bo Chemicals |
| Orbitech |
Sung Bo and Orbitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sung Bo and Orbitech
The main advantage of trading using opposite Sung Bo and Orbitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sung Bo position performs unexpectedly, Orbitech 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 Orbitech will offset losses from the drop in Orbitech's long position.| Sung Bo vs. ECSTELECOM Co | Sung Bo vs. Digital Multimedia Technology | Sung Bo vs. SM Entertainment Co | Sung Bo vs. SK Telecom Co |
| Orbitech vs. Inzi Display CoLtd | Orbitech vs. Ssangyong Information Communication | Orbitech vs. RFTech Co | Orbitech vs. Nable Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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