Correlation Between Bosung Power and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Bosung Power and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Inzi Display.
Diversification Opportunities for Bosung Power and Inzi Display
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosung and Inzi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Bosung Power i.e., Bosung Power and Inzi Display go up and down completely randomly.
Pair Corralation between Bosung Power and Inzi Display
Assuming the 90 days trading horizon Bosung Power Technology is expected to under-perform the Inzi Display. But the stock apears to be less risky and, when comparing its historical volatility, Bosung Power Technology is 1.1 times less risky than Inzi Display. The stock trades about -0.02 of its potential returns per unit of risk. The Inzi Display CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 174,044 in Inzi Display CoLtd on October 13, 2024 and sell it today you would lose (31,544) from holding Inzi Display CoLtd or give up 18.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. Inzi Display CoLtd
Performance |
| Timeline |
| Bosung Power Technology |
| Inzi Display CoLtd |
Bosung Power and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Inzi Display
The main advantage of trading using opposite Bosung Power and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Bosung Power vs. Jin Air Co | Bosung Power vs. Hanwha Chemical Corp | Bosung Power vs. Kakao Games Corp | Bosung Power vs. Jeju Air Co |
| Inzi Display vs. KMH Hitech Co | Inzi Display vs. GemVaxKAEL CoLtd | Inzi Display vs. Bosung Power Technology | Inzi Display vs. Busan 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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