Correlation Between GS Engineering and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both GS Engineering and ASTORY CoLtd 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 GS Engineering and ASTORY CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and ASTORY CoLtd, you can compare the effects of market volatilities on GS Engineering and ASTORY CoLtd 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 GS Engineering with a short position of ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and ASTORY CoLtd.
Diversification Opportunities for GS Engineering and ASTORY CoLtd
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 006360 and ASTORY is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd and GS Engineering 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 GS Engineering Construction are associated (or correlated) with ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of GS Engineering i.e., GS Engineering and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between GS Engineering and ASTORY CoLtd
Assuming the 90 days trading horizon GS Engineering is expected to generate 5.95 times less return on investment than ASTORY CoLtd. But when comparing it to its historical volatility, GS Engineering Construction is 2.25 times less risky than ASTORY CoLtd. It trades about 0.04 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 776,000 in ASTORY CoLtd on November 30, 2024 and sell it today you would earn a total of 159,000 from holding ASTORY CoLtd or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Engineering Construction vs. ASTORY CoLtd
Performance |
| Timeline |
| GS Engineering Const |
| ASTORY CoLtd |
GS Engineering and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and ASTORY CoLtd
The main advantage of trading using opposite GS Engineering and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.| GS Engineering vs. Barunson Entertainment Arts | GS Engineering vs. PJ Metal Co | GS Engineering vs. LEENO Industrial | GS Engineering vs. Duksan Hi Metal |
| ASTORY CoLtd vs. Hyundai Industrial Co | ASTORY CoLtd vs. Shinhan Inverse Copper | ASTORY CoLtd vs. Duksan Hi Metal | ASTORY CoLtd vs. Eagon Industrial 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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