Correlation Between Bosung Power and Kmw
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Kmw 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 Bosung Power and Kmw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and Kmw Inc, you can compare the effects of market volatilities on Bosung Power and Kmw 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 Bosung Power with a short position of Kmw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Kmw.
Diversification Opportunities for Bosung Power and Kmw
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosung and Kmw is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Kmw Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kmw Inc and Bosung Power 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 Bosung Power Technology are associated (or correlated) with Kmw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kmw Inc has no effect on the direction of Bosung Power i.e., Bosung Power and Kmw go up and down completely randomly.
Pair Corralation between Bosung Power and Kmw
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 0.48 times more return on investment than Kmw. However, Bosung Power Technology is 2.1 times less risky than Kmw. It trades about 0.25 of its potential returns per unit of risk. Kmw Inc is currently generating about 0.07 per unit of risk. If you would invest 255,500 in Bosung Power Technology on October 16, 2024 and sell it today you would earn a total of 24,500 from holding Bosung Power Technology or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. Kmw Inc
Performance |
| Timeline |
| Bosung Power Technology |
| Kmw Inc |
Bosung Power and Kmw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Kmw
The main advantage of trading using opposite Bosung Power and Kmw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Kmw 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 Kmw will offset losses from the drop in Kmw's long position.| Bosung Power vs. Woori Financial Group | Bosung Power vs. Jb Financial | Bosung Power vs. Nh Investment And | Bosung Power vs. Hyundai Heavy Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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