Correlation Between Bosung Power and UNISEM
Can any of the company-specific risk be diversified away by investing in both Bosung Power and UNISEM 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 UNISEM 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 UNISEM Co, you can compare the effects of market volatilities on Bosung Power and UNISEM 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 UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and UNISEM.
Diversification Opportunities for Bosung Power and UNISEM
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosung and UNISEM is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM 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 UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Bosung Power i.e., Bosung Power and UNISEM go up and down completely randomly.
Pair Corralation between Bosung Power and UNISEM
Assuming the 90 days trading horizon Bosung Power is expected to generate 1.29 times less return on investment than UNISEM. But when comparing it to its historical volatility, Bosung Power Technology is 1.1 times less risky than UNISEM. It trades about 0.21 of its potential returns per unit of risk. UNISEM Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 584,877 in UNISEM Co on October 13, 2024 and sell it today you would earn a total of 61,123 from holding UNISEM Co or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. UNISEM Co
Performance |
| Timeline |
| Bosung Power Technology |
| UNISEM |
Bosung Power and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and UNISEM
The main advantage of trading using opposite Bosung Power and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Bosung Power vs. Iljin Display | Bosung Power vs. Lotte Data Communication | Bosung Power vs. Nice Information Telecommunication | Bosung Power vs. SCI Information Service |
| UNISEM vs. SBI Investment KOREA | UNISEM vs. Woori Technology Investment | UNISEM vs. GS Retail Co | UNISEM vs. Asiana Airlines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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